Page 33 - December 19. 2024 Bulletin

affect their credit quality. Prohibiting tax-exempt issuance
by any municipal subsector would marginally reduce supply Dana Sparkman, CFA, is Senior Vice President/Municipal
of tax-exempt paper. Also, any changes in tax free eligibility Analyst in The Baker Group’s Financial Strategies Group.
may lead to a surge in issuance prior to the onset of those She manages a municipal credit database that covers more
adjustments. than 150,000 municipal bonds, providing clients with
specific credit metrics essential in assessing municipal
As negotiations progress in 2025, it is possible that in the credit. Dana earned a bachelor’s degree in finance from the
first 100 days of the new administration consequences for the University of Central Oklahoma as well as the Chartered
municipal market will be clarified. For now, we expect relatively Financial Analyst designation. Contact: 405-415-7223,
stable demand for tax-exempt income generally, though banks dana@GoBaker.com.
subject to the corporate tax rate will likely continue to struggle
to find value in tax-exempt municipals without seeking long-
term bonds. Investors should be watchful for any glimpses of
“pay-for” items that could negatively affect issuers or investors.

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