Supply for the final two weeks of the year will be virtually nonexistent, with only one deal, $24.46 million of taxable multi-family/project bonds from the Colorado Housing and Finance Authority, on the calendar for next week.
In a move cheered by public power companies, the House passed a bill that would give the Federal Energy Regulatory Commission authority to keep power plants open if their closure threatens reliability.
The larger story could be that some of the larger issuers are asking water lobbyists and lawmakers to push the EPA because of worries the administration may tamper with or even eliminate the program, said a WIFIA expert.
The Equitable School Revolving Fund, which has more deals in the works, has maintained its strong credit profile even as the sector has experienced headwinds.
"Once this week is done, that's it for the year. The following week is Christmas, and then after that, the new year," said Jeff Timlin, a partner at Sage Advisory.
A looming government shutdown marks an uncertain future for the country as economists and muni leaders point to the positive effects of stubborn inflation on state tax revenues.
Federal Reserve Gov. Christopher Waller said monetary policy must remain insulated from political pressure, arguing that communication with the White House should be limited. Waller is slated to meet with President Trump Wednesday afternoon.
Inflation reports may drive markets in 2026 since the labor market is "sending mixed messages," said Kevin O'Neil, associate portfolio manager and senior research analyst at Brandywine Global.
Software as a service platform Adaje has acquired bond structuring software provider Munex and hired 25-year muni veteran Jon Sidman as its chief product officer.
Democratic Sens. Chris Van Hollen from Maryland and John Fetterman from Pennsylvania are reintroducing a bill to aid the public transit sector, a funding reduction target under Trump's administration.
With large language models parsing EMMA filings and investor relations sites, municipal issuers must modernize their disclosure so both humans and algorithms can accurately understand their credit story and avoid unintended red flags.
Next year, the "muni market could see stable to improving returns depending on yield curve positioning, with better performance possible at the long end of the curve," said Jonathan Rocafort, managing director and head of fixed income solutions at Parametric.
The creation of state-owned banks would be uniquely impactful to help states and municipalities meet today's unprecedented short- and long-term challenges.
"The steps that would be necessary to restore a sound fiscal profile are becoming increasingly drastic," the rating agency said in downgrading Jersey City.
The Trump administration officially rolled out an Executive Order laying out federal policy on Artificial Intelligence which cements fears from states worried about the loss of broadband funding tied to the Bipartisan Infrastructure Law.
A review Moody's launched in September ended with rating downgrades and negative outlooks for the city's outstanding general obligation and revenue bonds.
Kansas City Federal Reserve President Jeffrey Schmid and Chicago Fed President Austan Goolsbee said in statements Friday that their dissents from this week's interest rate decision were spurred by inflation concerns and a lack of sufficient economic data.
Pasadena and the Rose Bowl Operating Co. are suing UCLA, saying plans to relocate football games to SoFi stadium could jeopardize $130 million in revenue bonds.
"With its third straight rate cut, the Fed is sending a clear message: it's no longer just watching inflation ? it's managing risk," said Gina Bolvin, president of Bolvin Wealth Management Group.
As more states weigh legislative action to decouple from the provisions of One Big Beautiful Bill Act, Treasury Secretary Scott Bessent launches an outreach mission to counter what he calls, a "blatant act of political obstructionism," that will lead to higher state taxes.
The changing climate is increasing insurance rates for residents and cities and lowering property values in areas that face more frequent and intense disasters.
Muni yields were little changed, and have barely moved over the past several trading sessions, said Kim Olsan, senior fixed income portfolio manager at NewSquare.
State legislators are prepping for a coming storm of budget turmoil caused by shifting Medicaid policy as the era of historic tax cuts appears to be ending.
Municipal bond supply projections for next year range from a high of $750-plus billion to a low of $520 billion, with most firms expecting issuance to hover around $600 billion, easily surpassing 2025's record.
While muni returns moved lower last week, year-to-date returns still hover around 4%, said Jason Wong, vice president of municipals at AmeriVet Securities.
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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