With the "fragile" ceasefire in the United States-Iran conflict underway, the risk of higher rates beyond those from March has largely been removed, said BofA strategists.
Less than two weeks after Washington Gov. Bob Ferguson signed a new tax on annual income over $1 million, a lawsuit has been filed seeking to overturn it.
During the two-week ceasefire anything could still happen and a "blow up" would create significant volatility, said Kevin McGuigan, director at Municipal Market Analytics.
Realty Income (O), a real estate investment trust concentrated in low-risk retail and industrial real estate, was the funding recipient on the $675 million deal.
Litigants say $400 million in planned Port of South Louisiana bonds were not properly advertised. It's part of a wider challenge to industrial development plans.
"It seemed to be a relief rally [Wednesday], and that's what everyone's hoping for. But fundamentally, they're still major issues that need to be addressed, but people seem to be giving that a pass," on Wednesday, said a source.
Market Intelligence analyst Jeff Lipton looks back on a first quarter in which the municipal bond market was unexpectedly buffeted by the winds of war.
KBRA revised the outlook on the Chicago Transit Authority's Series 2015 and 2016 Transportation Infrastructure Finance and Innovation Act loans to stable.
Financial mismanagement and apparent revenue diversion led to events of default for centers owned by and financed through the PFA, the bond trustee said.
The legislature passed bills to cut personal income tax rates over time and limit increases on homestead property tax payments to the rate of inflation.
Financial markets, including the muni market, priced in too much of a "sure thing, done deal" Wednesday morning, said Kyle Gerberding, director of trading, a portfolio manager and partner at Asset Preservation Advisors.
The state Supreme Court's decision did not address the 2022 law's governmental contract ban for businesses deemed to be "boycotting" the fossil fuel industry.
"I would much rather invest in the muni, both in terms of default rates and in terms of the yield that you're getting off of those," said Travis Lower.
Wednesday's market rally is tied to President Donald Trump's announcement of the temporary ceasefire, which came about Tuesday night, an hour and a half before the president's 8 p.m. deadline, market participants said.
As Congress returns to Washington in the next few weeks thoughts will turn to a problematic reconciliation bill, a housing bill close to completion and a farm bill facing serious challenges.
"The steady tone talks to the underlying demand" for munis, NewSquare Capital's Kim Olsan said. "For the moment, munis are holding steady with a watchful approach.
Illinois curently plans $3.2 billion of bond sales in FY2027 under Gov. JB Pritzker's executive budget, the Commission on Government Forecasting and Accountability said, adding additional authorization requests are expected.
The California Municipal Finance Authority will issue $742 million in tax-exempt debt for the San Francisco Municipal Transportation Agency's first P3.
Market Intelligence analyst Jeff Lipton details some tools he finds useful to manage risk exposure, establish market trends and identify opportunities.
The state's latest water plan outlines $174 billion of capital water needs over the next 50 years. "The era of cheaper water is over," said one state water official.
The yield curve adjusted lower every day last week, drawing strong inquiries to dealers, "especially in the 10-to-15-year space that had been hit hardest in March," Birch Creek Capital analysts noted in their weekly market commentary.
"Historically, the weeks leading up to the April 15 tax day have been challenging for the municipal market, often due to weaker supply and demand dynamics," said Sam Weitzman, a product manager at Western Asset.
President Trump's budget proposal for fiscal year 2027 includes $1.5 trillion for the military, while cutting FEMA's budget, privatizing the TSA, and increasing transportation funding.
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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