Latest news with #municipalbonds
Yahoo
2 days ago
- Business
- Yahoo
NYC Comptroller Slams Mayor Eric Adams' Bitcoin Bond Plan as 'Fiscally Irresponsible'
New York City's Comptroller has dismissed a plan by Mayor Eric Adams to back municipal bonds with bitcoin BTC, calling it 'legally dubious and fiscally irresponsible.' Comptroller Brad Lander, who co-manages the city's debt issuance, rejected the proposal just days after Adams pitched the so-called 'BitBond' to a crowd at a bitcoin conference in Las Vegas. 'Cryptocurrencies are not sufficiently stable to finance our city's infrastructure, affordable housing, or schools,' Lander said in a press release. He added that such a move could shake investor confidence and run afoul of federal tax law. The idea is part of Adams' broader push to position New York as a global crypto hub. Since taking office, he has converted paychecks into crypto and launched a digital asset advisory council. But Lander pushed back against the bond, which could use some of the proceeds to buy BTC. He argued that the city's borrowing system is grounded in the U.S. dollar, and any deviation would require mechanisms that the city doesn't have, like converting bitcoin into cash for public spending. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
NYC Bitcoin-Bond Idea Squashed by Comptroller as ‘Irresponsible'
By Teresa Xie and Save New York City Comptroller Brad Lander poured cold water on Mayor Eric Adams's proposal to issue municipal bonds backed by Bitcoin. Lander, who shares responsibility for debt issuance with the Mayor's Office of Management and Budget, said the largest US city won't be issuing Bitcoin-backed bonds while he's in office. Lander, a Democrat, is also a candidate to succeed Adams in November's mayoral election. Adams is running as an independent.
Bloomberg
23-05-2025
- Business
- Bloomberg
Pristine Taxable Munis Seen Gaining After Moody's US Rating Cut
High-quality taxable municipal bonds are poised to get a boost as the downgrade of the US government by Moody's Ratings will leave investors looking elsewhere for pristine credits, according to Barclays Plc. The US was stripped of its last top credit rating by Moody's last week on concern about the country's declining fiscal outlook. The federal budget deficit is running near $2 trillion a year, or more than 6% of gross domestic product. Most US states and cities are required to maintain a balanced spending plan.
Bloomberg
19-05-2025
- Business
- Bloomberg
Siebert Sees Muni Borrowers Asking More of Banks Amid Volatility
State and local borrowers are asking more of Wall Street banks when they select underwriters for municipal-bond deals, according to Gary Hall, the head of infrastructure and public finance at Siebert Williams Shank & Co. Issuers in the $4 trillion muni market are increasingly querying banks during the underwriter selection process about their willingness to use their balance sheet to support transactions, Hall said in an interview on the sidelines of a Bond Buyer public finance conference in Atlanta. This comes as investors, including banks and insurance companies, are being more selective in what they buy, he said.
Forbes
13-05-2025
- Business
- Forbes
Tax-Efficient Wealth Strategies For High-Income Investors
Tax-efficient wealth strategies can help you align your financial goals with smart structures and investment vehicles that legally minimize your tax burden. getty For high-income earners and ultra-high-net-worth individuals, one of the most pressing concerns isn't just how to grow wealth. There are also questions regarding ways to keep it. As income rises, so does the complexity of the tax landscape. Tax-efficient wealth strategies can help you align your financial goals with smart structures and investment vehicles that legally minimize your tax burden. In this article, we'll take a high-level look at three powerful strategies: private equity investments, municipal bonds, and Opportunity Zones. Each offers unique advantages for those looking to preserve capital and grow wealth over the long term. Unlike public market investments, private equity deals often delay taxation until a liquidity event occurs. This could take the form of a sale or IPO. The deferral of capital gains allows more of your money to stay invested longer. In addition, many private equity structures qualify for long-term capital gains treatment, which is taxed at lower rates than ordinary income. As an investor, you could also benefit from depreciation and amortization, which reduce taxable income while still allowing your investment to grow. If you're in a high tax bracket, you may be attracted to the tax-exempt benefits of municipal bonds. These are issued by state and local governments, and they collect interest that is free from federal taxes. They may also be exempt from state and local taxes if you live in the issuing state. You might choose municipal bonds as a way to bring balance to your portfolio. In a shifting market, they could provide some diversity if you also hold stocks. Bonds generally provide steady returns, which could make them a smart choice for preserving capital. If you are a high-net-worth individual and are nearing retirement or seeking steady income with minimal tax exposure, you might consider municipal bonds. Introduced as part of the 2017 Tax Cuts and Jobs Act, Opportunity Zones refer to a tax incentive program. They are designed to generate investment in economically distressed areas. If you are thinking about investing in Opportunity Zones, it can be helpful to be aware of the benefits they offer: By using a combination of investments and structures, high-income individuals can find ways to protect their wealth for their families and beyond. If you're an accredited investor, you might decide to use private equity and municipal bonds, or to invest in Opportunity Zones to reduce your tax liability. You'll need to work closely with a tax professional who is aware of your financial goals and can present options to you so you're able to make decisions that are best for your situation.
