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Article: Muni market to spend 1996 under the cloud of tax reform, says analyst.(Arthur Miller of Goldman, Sachs and Co.)
- Article from:
- The Bond Buyer
- Article date:
- January 12, 1996
- Author:
CopyrightCOPYRIGHT 1996 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Tax reform will overshadow the municipal market for another year, predicts Goldman, Sachs & Co. analyst and vice president Arthur Miller.
Bond issuance and investors' returns will both suffer as a result, Miller said in a new report giving his outlook for the next 12 months.
"It appears that 1996 will witness a continuation of the fundamental tension of reduced net supply outstanding competing against weak demand caused largely by the specter of tax reform," said Miller.
He said if interest rates remain at their current levels, long- term new-issue supply should total $160 billion in 1996, while every 20-basis point drop in interest rates could cause ...