Lates News

Although municipal bond valuations are attractive and new bond issuances are huge, the share of state and local government bonds held by US banks is still at its lowest level since the financial crisis. According to the analysis of Federal Deposit Insurance Corporation (FDIC) data for the second quarter by Municipal Market Analytics, banks collectively hold nearly $295 billion in securities and approximately $190 billion in direct loans to municipalities. This means that municipal securities account for about 1.18% of banks' total assets, the lowest level since the financial crisis.