ARTICLE
17 January 2013

A Retroactive 28% Cap On Muni Bonds?

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Goodwin Procter LLP

Contributor

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In recent fiscal cliff discussions, President Obama has floated the idea of a retroactive 28% cap on municipal bonds.
United States Tax

In recent fiscal cliff discussions, President Obama has floated the idea of a retroactive 28% cap on municipal bonds. A recent research report from Citi estimated that up to $150 billion bonds might be subject to mandatory calls at par if the proposed 28% cap were enacted on a retroactive basis. Although the cap did not make it's way into the final fiscal cliff agreement, market experts believe the threat persists as lawmakers and the administration squabble over whether to: raise the debt ceiling; allow sequestration to take place; and adopt another continuing resolution to keep the federal government funded. There is a looming March 27, 2013 date for these decisions. See the full article on this topic in the Bond Buyer here.

Goodwin Procter LLP is one of the nation's leading law firms, with a team of 700 attorneys and offices in Boston, Los Angeles, New York, San Diego, San Francisco and Washington, D.C. The firm combines in-depth legal knowledge with practical business experience to deliver innovative solutions to complex legal problems. We provide litigation, corporate law and real estate services to clients ranging from start-up companies to Fortune 500 multinationals, with a focus on matters involving private equity, technology companies, real estate capital markets, financial services, intellectual property and products liability.

This article, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin Procter LLP or its attorneys. © 2013 Goodwin Procter LLP. All rights reserved.

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