DTF - Midterm Elections - The Quick Muni Note
By John R. Mousseau, CFA
Here's our first take after the midterm elections.
The polls actually got it right, with the Democrats taking the House of Representatives and the Republicans enjoying a slight pickup in the Senate.
Divided government, with different parties in control of the House and Senate, has sometimes led to gridlock. It also tends to keep spurious legislation from being passed; and so, overall, markets are OK with this outcome.
Regarding munis, we feel that this election certainly eliminates the concern that a Republican House would have introduced legislation to cut income