Rep. Jim Himes, D-Conn., helped draft legislation that would create a short-term reinsurance program for municipal bonds. Himes argued that many municipal issuers have been unable to get credit enhancement for their bonds, causing them to delay capital projects. "You've got this destimulus out there," he said. "Lots of very good credits are not undertaking capital projects that they would love to undertake, at a time when construction costs and commodities are relatively inexpensive, because of this vapor lock in the market." Himes is set to discuss the legislation at SIFMA's Municipal Bond Summit today in New York.

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