March 29, 2018
The National Association of State Treasurers is urging Congress to pass legislation defining readily tradeable, investment-grade municipal securities as high-quality liquid assets under federal banking rules that the market has complained constrain banks’ appetite for munis.
NAST sent a letter to congressional leaders in both the House and Senate urging support of companion bills H.R. 1624, sponsored by Rep. Luke Messer, R-Ind., and S. 828, sponsored by Sen Mike Rounds, R-S.D. The bills would require the regulators to treat munis that are investment grade and actively traded in the secondary market as level 2B HQLA.