angle-left null Supreme Court Decisions to Have Limited Impact on Municipal Credits
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Supreme Court Decisions to Have Limited Impact on Municipal Credits

White Paper Manager Insights Active Fixed Income
June 2018
Supreme Court Decisions to Have Limited Impact on Municipal Credits

Authors and Contributors

U.S. Municipal Bond Team

U.S. Municipal Bond Team

The U.S. Supreme Court rendered verdicts in two cases that could have broad implications on the municipal market: South Dakota v. Wayfair, Inc. and Janus v. American Federation of State, County, and Municipal Employees. The Wayfair decision, a ruling in favor of South Dakota, will allow states to assess sales taxes on online retail transactions. The Janus decision, a ruling in favor of plaintiff Mark Janus, prohibits public unions from requiring workers to pay union dues. While both decisions were close, decided by a 5-to-4 vote, the implications are significant for municipal credits, but the ultimate impact may be less than investors expect.

On January 31, 2018, The Boston Company and Standish merged into Mellon Capital to form a combined entity, BNY Mellon Asset Management North America Corporation. Effective January 2, 2019, this entity was renamed Mellon Investments Corporation.