Supply has "declined materially, allowing dealers to take a breather, with their inventories dropping significantly, while retail investors do not seem to be spooked by rate volatility, lower taxes and possible threats to the tax-exempts, and continued putting money into tax-exempts at a brisk pace," said Mikhail Foux, managing director and head municipal research and strategy at Barclays.
"Volatility creates all kinds of opportunities in the municipal space, not just for tax-loss harvesting, but for positioning and parts of the yield curve that might be undervalued or certain sectors or states that are poised to perform well going into yearend," said Tim McGregor, a managing partner at Riverbend Capital Advisors.
Municipals are outperforming USTs to a large degree this month, with investment grade munis seeing positive 0.81% returns in November and 1.63% year-to-date. USTs are in the red at -0.40% in November with only 0.96% positive returns in 2024.
S&P Global Ratings placed Chicago's general obligation bond rating on watch negative Tuesday, warning against heavy reliance on one-time budget solutions.
Debt issuance and public-private partnerships could be in the financing mix for projects considered by the Arizona Water Infrastructure Finance Authority.
Panelists at the SEC, FINRA and MSRB joint Compliance Outreach Program looked at the state of municipal advisor regulation and how the Commission could respond going forward.
Credit ratings and the role of rating agencies have changed in response to an evolving market over the past 16 years, according to speakers during an online California Debt and Investment Advisory Commission.
The University of Chicago embarked on the Illinois Finance Authority's largest financing ever to transform its capital structure and fund major projects.
"This year, with the tax-exemption clearly threatened, primary calendars should (although, of course, might not) be larger, putting a $500 billion full-year supply total in range, with $451 billion already in the books through 46 weeks," said MMA's Matt Fabian.
Drexel Hamilton and four of its representatives were charged by the Financial Industry Regulatory Authority for violating the retail order period eligibility criteria set by municipalities.
The group of five banks deny long-standing charges from a Minnesota-based whistleblower that they conspired to artificially inflate the rates on variable-rate demand bonds.
The deal, which marks the city's largest special facilities revenue bond issuance, will help finance a terminal project at George Bush Intercontinental Airport.
Houston is set to price Tuesday $1 billion of United Airlines Terminal Improvement Projects AMT revenue bonds while the Public Finance Authority will bring $125 million of non-rated Million Air Three General Aviation Facilities Project revenue bonds.
The $4.5 billion of New York Transportation Development Corp. bonds sold for the P3?won the Northeast category?of The Bond Buyer's 2024 Deal of the Year awards.
As headline risk swirls around the Fed and the transition to the Trump administration, municipals have largely stayed in their own lane. November finds the municipal market "in far better technical shape, with an attractive backdrop through at least year-end," J.P. Morgan's Peter DeGroot said.?
The Chicago City Council delivered a strong rebuke of Mayor Brandon Johnson's fiscal 2025 budget on Thursday, rejecting a $300 million property tax increase.
The Federal Reserve chair said there are no economic indicators calling for rapid rate cuts. He also addressed Fed independence, the impact of Trump's economic agenda and more.
This month is experiencing similar volatility as 2016 when generic yields traded higher by 50 to 70 basis points during November of that year, said Kim Olsan, a senior fixed income portfolio manager at NewSquare Capital.
New Senate Majority Leader John Thune, who played a key role in negotiations of the Tax Cuts and Jobs Act, noted at the time the "fierce support in both chambers" for tax-exempt private activity bonds.
The county is reviewing responses to a request for proposals to help fund construction of a replacement jail through a bond-financed lease-purchase arrangement.
The number of active ETFs launched has skyrocketed this year, with 20 new funds launched year-to-date. This compares with the four passive ETFs created so far in 2024, according to Morningstar Direct data.
Market reaction to inflation numbers was "tempered," said Richard Flax, chief investment officer at Moneyfarm. But should inflationary pressures hold in 2025, "markets may anticipate that further rate cuts could be limited in scope, suggesting a more cautious investment outlook."
KBRA has placed Chicago's general obligation bond rating on watch for downgrade as the City Council prepares to vote tomorrow on a proposed property tax increase.
When communities can't access affordable insurance, it can decrease home values, tank municipal bond ratings, and cripple the tax base ? and this will only get worse if left unaddressed.
Rudy MeJia Jr. has been fined and given an eight-month suspension from associating with any FINRA member firm for failing to disclose that he opened a private investment pool and was receiving commission for sales on behalf of it.
Trump's proposed corporate tax cut, if enacted, would further concentrate the buyer base and increase the chance of volatility, said Wells Fargo head of municipal strategy Vikram Rai.
PureCycle Technologies (PCT), which bought back its muni bonds earlier this year, continues to sell them on to support its liquidity needs, CFO Jaime Vasquez said.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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