The following is a review of third and fourth quarter 2014 research notes by Moody’s Investors Service and Standard & Poor’s.
P3S GET HELP FROM NEW MUNICIPAL BOND PROPOSAL
The Obama administration has proposed a new municipal bond, a Qualified Public Infrastructure Bond, that “could be a low-cost approach to stimulating much-needed infrastructure investment,” notes Standard & Poor’s in a Jan. 16 commentary. “But there is a cost associated with it, and as a result extensive deliberation in Congress is likely.” The proposal is part of the Build America Investment Initiative, launched in July 2014 by the administration. S&P notes the QPIB is meant to extend the benefits of municipal bonds to P3s, “with the goal of lowering the cost of borrowing and attracting new sources of capital. While few details are known yet, the proposal is expected to be included in the executive budget to be released in February.”