High-tax states' bonds are so in demand that ratings don't matter

High-tax states' bonds are so in demand that ratings don't matter

• There’s so much money chasing after the bonds sold by America’s high-tax states that buyers don’t seem to care too much about what credit-rating companies think.

"The heavy demand overall has driven municipal yields to their lowest in more than six-decades.
And with rates so low, the yield penalties that would typically differentiate a deeply indebted state from a thrifty one have become little more than rounding errors that in some cases contrast with their standing in the ratings pecking order.
...This dynamic shows how dramatic the demand has become for tax-exempt securities since President Donald Trump’s 2017 tax law limited state and local deductions.
That change drove investors in high tax-states like California, New York and New Jersey into municipal bonds as an alternative way to drive down what they owe..."
Read all.