February 3, 2023
Public Finance 2022 Year in Review: New Tools and Other Updates
Municipal bond issuers faced a challenging market in 2022, as the Federal Reserve increased interest rates at its quickest pace in over 40 years in an effort to address inflation. Volatile interest rates, high outflows from municipal bond investors and, for some local governments, the availability of federal stimulus funds caused many bond issuers to pause planned borrowings and, in the case of refundings, set aside issuances altogether. Also in 2022, Congress provided both new tools and new requirements that may affect municipal bond issuers. In addition, the Washington State Legislature provided some new revenue tools for funding infrastructure. The following provides a brief overview of this public-finance related legislation and includes tax updates and a summary of enforcement activity by the Securities and Exchange Commission (“SEC”) involving municipal bonds.