Active ETFs Gain Market Share, Grow in Number
Active municipal bond ETFs are eclipsing passive offerings, with 110 active funds versus 56 passive as of 2025. Since 2020, more active ETFs have launched each year, and 2023 saw 23 new active products compared with nine passive. Although passive ETFs still hold twice the assets ($134 billion vs $61.5 billion), active funds are gaining market share and delivering competitive performance. Advisors are shifting to ETFs for their tax efficiency, liquidity, and ease of integration into model portfolios.
Reconciliation 2.0 a Real Possibility
Congress is juggling a packed agenda that now features a second reconciliation bill aimed at allocating roughly $140 billion to the Department of Homeland Security’s Border Patrol and ICE operations. Lawmakers are exploiting the 2015 repeal of the Conrad Rule to...
FOMC Preview: What Comes After Powell and What Should Investors Do?
The Federal Open Market Committee is expected to leave the fed‑funds target unchanged at 3.50%‑3.75% during its Tuesday‑Wednesday meeting, which will likely be the last chaired by Jerome Powell. Analysts focus on the upcoming transition to nominee Kevin Warsh, whose...
Midwest Data Centers: Why some Proposals Succeed and Others Fail
Midwest communities are rapidly embracing data‑center development, with more than 800 towns approving projects and Illinois alone accounting for 229 sites. Proponents cite diversified tax bases, high‑pay jobs, and local business growth, while opponents raise concerns about water use, energy...
Northeast Universities Find Bond Investors Amid Rocky Sector Trends
Northeast universities are tapping the municipal bond market despite a volatile April environment. The University of Massachusetts priced a $560 million refunding deal with yields from 2.5% to 3.8%, Quinnipiac issued $180 million of revenue bonds, and Adelphi raised $106 million, albeit after...
Munis Close Quiet Ahead of Fed Week
Municipal bonds closed flat on Friday while U.S. Treasuries edged higher and equity markets finished mixed. The Justice Department wrapped up its criminal investigation into outgoing Fed Chair Jerome Powell, removing a lingering uncertainty that had stalled Kevin Warsh’s confirmation....
DOT Looking for P3s on Highways
The U.S. Department of Transportation unveiled the Freedom to Drive Initiative, a program that pushes state governors to flag highway bottlenecks and invites private‑sector financing through public‑private partnerships (P3s). The Build America Bureau will extend TIFIA loans and other credit...
Market Starts to Stabilize Heading Into May
The municipal bond market is showing signs of stabilization as May begins, driven by easing Middle East tensions and declining rate volatility. Analysts note that cash balances remain sizable, supporting investor confidence. New‑issue activity is robust, with roughly $7.2 billion slated...
Moody's Revises Washington State's Outlook to Negative
Moody's kept Washington State’s Aaa issuer rating but changed its outlook from stable to negative, citing funding uncertainties and a pending legal challenge to the new millionaire’s tax. The downgrade reflects growing reliance on one‑time budget fixes, projected narrowing of...
MSRB Seeks Comment on Draft Amendments to Retire Financial Advisor Terminology
The Municipal Securities Rulemaking Board (MSRB) has issued a request for comment on draft amendments that would retire the term “financial advisor” and replace it with the uniform phrase “municipal advisor” across five rules. The proposal aligns MSRB language with...
Research Puts Numbers on Wildfire Risk and Muni Borrowing Costs
An academic study of 580,000 municipal bonds shows that U.S. communities with higher wildfire risk pay an average 0.36 percentage‑point yield premium on 1‑ to 15‑year issues, costing about $3,800 extra interest per $1 billion issue annually and $4 billion in additional taxes...
Munis and U.S. Treasuries Grow Cheaper
Municipal bonds slipped on the front end Thursday, creating a modest inversion around the 2028‑2030 segment as Treasury yields continued to fall and equities closed lower. New‑issue activity showed Morgan Stanley pricing $564 million of UMass revenue‑refunding bonds and Round Rock, Texas...
How to Maximize the Benefits of Taxable Munis in Your Portfolio
Jeff Lipton outlines how taxable municipal bonds can boost portfolio yield and diversification amid heightened market volatility. He notes that spreads over tax‑exempt munis have widened to 160‑170 basis points, delivering 7.89% returns in 2025 versus 4.25% for the tax‑exempt...
Oklahoma Justices Reject Challenge to Winter Storm-Related Bonds
The Oklahoma Supreme Court rejected a challenge to $697 million in winter‑storm bonds issued for Public Service Company of Oklahoma, affirming the Oklahoma Corporation Commission’s (OCC) authority to approve rate‑payer‑backed securitizations. The ruling confirms the legality of bonds sold in 2022...
Bonds Play a Role in Arlington, Texas, Lease Extension for Dallas Cowboys
Arlington’s City Council approved a master agreement extending the Dallas Cowboys’ lease at AT&T Stadium through 2055, with the team pledging at least $750 million for facility upgrades. The city will reimburse up to $273 million over 20 years for maintenance and...
Conduit Issuer Project-Selection Process in Spotlight
The SEC’s municipal securities director warned that non‑governmental conduit borrowers are driving the bulk of defaults in the municipal bond market. Data from Municipal Market Analytics shows that from Jan 2020 through April 2024, conduit‑backed borrowers accounted for 75% of impairments...
D.C. Nets a Stable Rating Outlook
Moody’s Investors Service changed Washington, D.C.’s credit outlook from negative to stable on April 23, 2026, while reaffirming its Aa1 issuer rating. The shift follows a 2025 downgrade from Aaa to Aa1 and reflects the city’s strong fiscal management amid remote‑work...
How AI Struggles at Pricing High-Yield Bonds
Artificial intelligence is struggling to price high‑yield municipal bonds because the segment represents only about 7% of the muni market, leaving models with sparse data and volatile credit characteristics. Major players like J.P. Morgan’s PricingDirect have opted to exclude high‑yield bonds...
Munis and USTs Show Little Movement Despite Ceasefire Announcement
Municipal bond yields held steady on Wednesday after President Donald Trump announced an extension to the Iran cease‑fire, while U.S. Treasury yields barely moved and equity markets closed higher. Credit analyst Mohammed Murad noted the extension may signal a longer‑term...
Houston Takes Action to Save State Grant Funding
Houston City Council voted 13‑4 to amend a recent ordinance that limited police cooperation with ICE, aiming to preserve roughly $114 million in state public‑safety grants. Texas Governor Greg Abbott and Attorney General Ken Paxton warned the city that non‑compliance with...
Online Financial Marketplace Munivestor Sets Summer Launch
Munivestor is set to launch a digital municipal bond marketplace this summer, allowing cities to issue bonds of $50 million or less directly to a broad pool of investors, including retail participants. The platform digitizes the issuance workflow with a 30‑day...
The Public Finance Authority's Troubled Ownership Program
The Public Finance Authority (PFA) of Wisconsin, a major municipal conduit issuer, operates a little‑known asset‑ownership program that now holds roughly $1.2 billion of tax‑exempt bonds, nine of which are in default. The distressed portfolio includes four proton‑therapy centers, a failed...
Nebraska Governor Vows Property Tax Reform Next Year
Nebraska Governor Jim Pillen announced that 2027 will be the target year for sweeping property‑tax reform after legislators failed to deliver relief in the current session. The state’s 2024‑25 tax caps, which limit municipal revenue but allow exceptions for public‑safety...
High Leverage Brings Negative Outlook to San Diego Sewer Bonds
San Diego’s Public Facilities Financing Authority received mixed ratings as it prepares to issue new sewer revenue bonds for its Pure Water project. Fitch downgraded the outlook on the sewer bonds to negative, citing leverage climbing to 8.2 times and projected...
Ohio Mulls Data Center Rules as Wisconsin Lawmakers Stall
Ohio lawmakers are debating bills to end data‑center tax exemptions and a ballot amendment that would ban facilities exceeding 25 MW, while Wisconsin saw four data‑center incentive bills fail and local opposition intensify, including a voter‑approval measure for projects over $10 million....
Munis See Weakness on Short-End, Outperform USTs
Municipal bonds weakened on the short end Tuesday as U.S. Treasuries fell and equities closed lower. Analysts cited a mix of spiking oil prices, stalled U.S.-Iran peace talks, and hawkish Fed chair comments as possible drivers. Despite the short‑term dip,...
L.A. Mayor's Budget Turns 180 Degrees From Last Year
Los Angeles Mayor Karen Bass unveiled a $14.6 billion 2026‑27 spending plan that flips last year’s proposed $1 billion cut. The new budget funds the hiring of 510 police officers, a $233 million boost to the police department, and a $55 million increase for...
Energy Producing States Face Volatile Oil Prices
Oil prices surged above $114 per barrel in early March, the highest level since 2022, after the Iran‑Israel conflict ignited market volatility. The spike lifted revenue streams for oil‑producing states, especially Texas and New Mexico, whose 10‑year growth rates exceed the...
Recent Large Taxable GO Deals Show Continued Demand
Large taxable general‑obligation bonds have re‑energized the muni market, with New York City issuing $2.25 billion and Hawaii $1.5 billion in high‑grade deals last week. The combined $4 billion‑plus weekly issuance is the strongest since March 2023, offering investment‑grade buyers liquidity and attractive credit spreads. Analysts...
Munis and USTs Little Changed as Markets Await Ceasefire News
U.S. municipal bonds and Treasury yields were largely unchanged on Monday as investors awaited news on whether the U.S. ceasefire with Iran would be extended. Market participants, including SWBC CIO Chris Brigati, said they expect only modest reactions unless the announcement...
Megan Kilgore Leaving Columbus to Launch Consulting Firm
Columbus city auditor Megan Kilgore is resigning to co‑found BKC Group, a technology consulting firm focused on modernizing the municipal bond market. During her nearly ten‑year tenure, Kilgore helped the city retain triple‑AAA credit ratings and secure a $1.9 billion bond...
Los Angeles School Bond Outlook Dropped to Negative by Fitch, Moody's
Fitch Ratings and Moody’s have both changed the outlook for Los Angeles Unified School District (LAUSD) to negative as the district prepares to issue roughly $1.09 billion of new bonds. While the district’s general‑obligation (GO) bonds keep a AAA rating, the...
Lincoln Center Bond Sale to Fund Expansion Prompts Rating Concerns
Lincoln Center for the Performing Arts sold a $235 million bond package at an average 3.158% yield, a deal that was heavily oversubscribed. The financing pushes total debt to $322 million and prompted S&P to downgrade the center’s rating to A‑ and...
Strait of Hormuz Deal Sees Munis Firmer, USTs Rally
Municipal bonds rose on Friday as U.S. Treasuries rallied following the announcement that commercial vehicles can now transit the Strait of Hormuz. Bank of America analysts said the cease‑fire optimism creates a liquidity‑driven, risk‑on environment that is neutral for duration...
Florida Agency Sues 42 Counties for Allegedly Flouting Bond Support Ruling
The Florida PACE Funding Agency has filed a lawsuit against 42 county tax collectors for refusing to collect environmental‑assessment fees that back $150 million in municipal bonds, despite a Florida Supreme Court order affirming the bonds’ validity. The agency warns that...
Charter School Company Tax Exemption Questioned
The IRS revoked the tax‑exempt status of Hennepin Schools Building Company effective Nov. 15, 2025 after the nonprofit failed to file Form 990 for three consecutive years. The revocation puts the $17.09 million Charter School Lease Revenue Bonds Series 2021A and the $475,000 Series 2021B in...
New Mexico Justices Reject Move to Void County's ICE Contract for Bond-Funded Facility
New Mexico’s Supreme Court rejected a petition from Attorney General Raúl Torrez seeking to void Otero County’s five‑year, $283 million ICE service contract. The decision preserves roughly $14.33 million of outstanding Series 2007 revenue bonds that fund the county’s immigration detention facility. County...
Kansas City Council Advances Plan for $1.9B Royals Stadium
Kansas City’s city council voted to move forward with a $1.9 billion stadium for the Royals, allocating $600 million in public funding through bond issuance. The plan leverages the Show‑Me Sports Investment Act, which could cover up to half of the qualifying...
Is Record Supply Causing Investor Fatigue? Not yet, Bond Buyers Say
Record municipal bond issuance is testing market capacity, with $16.3 billion issued in a single week and $150.4 billion year‑to‑date, pushing the market to $4.4 trillion in 2025. Underwriters are moving pricing to early weekdays to capture investor attention and avoid fatigue, especially...
Moody's Puts Corpus Christi Under Downgrade Review Again
Moody's has placed Corpus Christi, Texas, under a second downgrade review within seven months as the city’s water emergency timeline accelerates from November to late summer. The agency previously cut the city’s general‑obligation and utility‑enterprise bonds to A1 in December,...
Ceasefire Doesn't Move Muni Yields
Municipal bond yields held steady on Thursday despite a 10‑day cease‑fire between Israel and Lebanon, which some investors expected to boost confidence. Treasury prices slipped slightly and equities rose, but headline risk remained dominant. In the primary market, BofA Securities...
State Bond Banks Uniquely Positioned to Weather Muni Credit Challenges
State bond banks, representing a low‑mid single‑digit slice of the $4.3 trillion municipal bond market, issue highly rated revenue bonds that are insulated from a state’s general‑obligation debt limits. Their pooled‑loan structure, over‑collateralization and state‑aid intercept provisions routinely earn AAA or...
Potential Space Florida Deal for 'Project Jaguar' Could Be First to Use New Spaceport PABs
Space Florida is preparing a conduit financing package for the confidential "Project Jaguar," authorizing up to $235 million in taxable and tax‑exempt bonds. The deal would be the first to employ private‑activity bonds (PABs) for a spaceport under the One Big Beautiful Bill Act,...
Data Centers Under Fire
Virginia’s 2010 sales‑and‑use tax exemption for computer chips used in data centers has ballooned from an estimated $1.5 million annual loss to about $2 billion this year, prompting state officials to reconsider the policy. Texas faces a comparable shortfall, projecting $3.2 billion in...
Chicago to Sell Water Bonds as City Looks to Become Regional Supplier
Chicago’s finance office will issue $875 million of second‑lien water revenue bonds next month, split into three series to fund capital upgrades and refinance older debt. Series 2026A allocates $661 million for new projects such as plant upgrades, meter replacements, 20 miles of pipe...
Superior, Wisconsin, Weighs Bond-Financed Bid for Water Utility
Superior, Wisconsin is weighing a bond‑financed purchase of its privately owned water system, the state’s last investor‑owned water utility. An appraisal puts the water assets at $58 million, while a broader acquisition that includes electric and gas could cost $274‑$306 million by...
Munis Stay Quiet as Equities and Treasuries See Gains
Municipal bond prices were largely unchanged on Tuesday while U.S. Treasuries firmed and equity markets closed higher. The muted muni activity reflects lingering geopolitical uncertainty and elevated oil prices that keep inflation expectations alive. Meanwhile, the new‑issue calendar surged, with...
PREPA Judge Tells Parties to Look at the Past Before the Future
U.S. District Judge Laura Taylor Swain ordered the PREPA Title III bankruptcy parties to first litigate the bondholders’ accounting counterclaim, emphasizing past reporting over speculative future valuations. She noted that methodological disputes over how to value the secured claim must be resolved...
VRDN Unsold Inventory Reaches High for Year-to-Date
The short‑term municipal market is feeling pressure as unsold variable‑rate demand note (VRDN) inventory climbed to a year‑to‑date high of $8.8 billion, with $1.63 billion repriced on Tuesday. Dealers are stretched, especially on $7.1 billion of weekly‑reset notes, and no new buyers have...
Texas Judge Blocks Termination of MWBE Certification for State Contracts
A Texas judge issued a temporary injunction halting Acting Comptroller Kelly Hancock’s effort to strip minority‑ and women‑owned businesses from the state’s Historically Underutilized Businesses (HUB) program. The emergency rule would have reduced certified firms from over 15,000 to roughly...