What Was Once Lost May Now Be Found: Revisiting the Value of Tax-Exempt Municipals in Anticipation of Higher Corporate Tax Rates
The relative value of tax-exempt municipal bonds decreased for property and casualty (P&C) insurers with the reduced corporate tax rates in the Tax Cut and Jobs Act of 2017. However, with the new Congress and Biden administration expressing support for higher corporate tax rates, P&C insurers have begun inquiring about tax-exempt municipals in anticipation of a potential rate hike.

Matthew Reilly, a Managing Director, and Clint Stonacek, an Assistant Vice President, of Conning’s Institutional Solutions group examine how the relative value of tax-exempt municipals might change should corporate tax rates revert higher. Their insights are in the Viewpoint “What Was Once Lost May Now Be Found: Revisiting the Value of Tax-Exempt Municipals in Anticipation of Higher Corporate Tax Rates.”
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