America's municipal bondholders have never been paid so little for taking on so much risk. The yields on state and local government bonds have steadily dwindled over the past month, even as the resurgent coronavirus pandemic is threatening to prolong the deep recession that's dealing a financial setback to borrowers in virtually every corner of the $3.9 trillion markets.

The Federal Reserve said it would reduce the rates it charges cities and states seeking short-term loans from an emergency lending program that has seen little takeup so far. Changes to the program must be agreed upon by the Treasury Department, which has approved $35 billion to cover losses on up to $500 billion in loans extended by the Fed.

Do Opportunity Zones have the potential to create a more optimistic and hopeful outlook, and to help build national recovery and resiliency in the wake of the COVID-19 pandemic and economic crisis? On August 5, OpportunityDb co-hosted a live national webinar briefing with Egils Milbergs at OZ Accelerator. The webinar featured opening remarks from Senator Tim Scott (R-SC) and a panel with guests from Urban Institute, Sen. Scott's office, Sorenson Impact Foundation, Emsi, EIG, and SBA.

The chief economist for Moody's Analytics is predicting the U.S. economy will dip back into a recession if Congress and the Trump administration don't agree on additional federal aid for state and local governments.

Universities, waiting to see how hard the coronavirus pandemic will hit overseas enrolments and government grants, have gone on a borrowing spree in the bond markets this year that outpaces a rise in companies' bond sales.

Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and Sen. Maggie Hassan (D-N.H.) introduced the State and Local Coronavirus Relief Fund Extension Act on Tuesday to lengthen CARES Act funding for municipalities by one year to the end of 2021. The deadline to use COVID-19 funding is by the end of 2020.

Senate Minority Leader Chuck Schumer is backing a bipartisan bill that would create a $120 billion fund for restaurants, which have been ravaged by the coronavirus pandemic, as senators headed home until September without a broader accord for a new stimulus package. His support increases the possibility that the bailout for independent restaurants could move forward on its own.

The ongoing emergency closure of the West Seattle Bridge, a vital and heavily used work of infrastructure that needs to be either repaired or replaced altogether posthaste after large cracks were discovered in it this past March, would put any city in a massive financial bind under any circumstances. But during a global pandemic when cities are confronting severe and still largely yet unknown economic fallout, Seattle might be facing a budgetary nightmare.

The U.S. Treasury is now issuing more longer-term debt to finance the $3 trillion budget deficit, raising the possibility that yields on those maturities will rise as investors demand greater compensation to swallow the additional supply. But the Federal Reserve is trying to suppress longer-term yields to support the economy. Which side will win out?

CDFA-Bricker PACE Webinar Series: Policy and the Future of PACE
Tuesday, August 25, 2020 - 11:00 AM - 1:00 PM Eastern

CDFA // BNY Mellon Development Finance Webcast Series: Investing in Childcare Facilities
Thursday, August 27, 2020 - 1:00 PM Eastern