The purpose of this paper is to provide an overview of the municipal bond market with an
emphasis on the numerous embedded contingent claims. Embedded contingent claims …

We examine the impact of differences in interest rate volatility, the taxation of capital gains
and losses, callability, the Tax Reform Act of 1986, corporate and personal tax rates, and the …

This article considers appropriate debt-funding strategies for state and municipal
governments in the presence of a positive, tax-exempt term premium. In this context, the term …

Abstract The Tax Act of 1986 changed the tax treatment of tax-exempt municipal bonds for
banks. Since banks were the dominant participant in the municipal bond market until 1986 …

By the end of the third quarter of 2000, there was $1.6 trillion in outstanding municipal debt
that comprised roughly 11% of the US debt market. In 1999, municipal issuance amounted …