Finance





Hospital Munis Lag as Trump’s Funding Cuts Spark Investor Angst.

Takeaways by Bloomberg AI

Bond investors have been increasingly wary of debt sold by US hospitals, and they see looming cuts to federal health-care funding as new pain points for an industry that’s just starting to recover from pandemic stress.

Hospital debt is one of the worst-performing municipal-bond market sectors so far this year, with its 3.44% gain lagging the overall investment-grade basket by about 0.6 percentage point, according to data compiled by Bloomberg.

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Bloomberg Markets

By Aashna Shah and Elizabeth Rembert

December 12, 2025




What Healthcare Investors Value Most Today.

The healthcare municipal market continues to navigate a mix of structural headwinds, evolving risk appetites and a shifting credit landscape. A recent investor conversation at the Kaufman Hall Healthcare Leadership Conference offers insights as to where investors are focused today, and what borrowers can do to meet the market on favorable terms. Several themes emerged: geography and scale matter but do not outshine performance, execution beats aspiration, disclosure quality is a differentiator, and underlying credit quality matters more than bond or security structure. Underneath it all, supply and demand remain the strongest drivers of investor appetite and determine whether an order shows up on pricing day. Finally, investors’ key question when assessing strategy remains: are management’s incentives aligned with mine?

We thank Connie Lu, a fixed income investment analyst at Capital Group; Brian Pyhel, CFA, CPA, a director and senior research analyst in the municipal fixed income division of BlackRock’s Portfolio Management Group; and Pranav Sharma, a research analyst on Lord Abbett’s Municipal Bond Research team, for participating in our conversation.

HR1, labor, cyber risk and other headwinds

Policy risk is near the top of investors’ watch list. The recently enacted HR1 (also known as the One Big Beautiful Bill) will materially change the healthcare landscape though its phased impacts will be credit-specific and state-mediated. Investors understand the law will impact borrowers in a variety of ways, but that is only the first derivation. While investors are not overly concerned by the potential impact of the law, they are concerned by borrowers who do not have a handle on, or are unwilling to communicate, its impact. “We’re still assessing” is no longer an adequate response.

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kaufmanhall.com

December 11, 2025




U.S. Public Power And Electric Cooperative 2026 Outlook: Rising Inflation And Capital Spending Stressors Perpetuate Negative Rating Pressures - S&P

Sector View: Negative

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08-Dec-2025 | 13:27 EST




Fitch U.S. Public Power and Electric Cooperative Outlook 2026

The operating environment for the public power sector should remain relatively stable in 2026. Fitch expects utilities to increase rates as needed to preserve financial performance.

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Wed 10 Dec, 2025 – 11:07 AM ET




S&P U.S. Public Finance Housing 2026 Outlook: Stable Footing And Strong Management Withstand Federal Policy Shifts

Sector View: Stable

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11-Dec-2025 | 11:26 EST




U.S. Water Utilities 2026 Outlook: Large And Small Systems Address Similar Challenges With Different Tools - S&P

Sector View: Mixed

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09-Dec-2025 | 12:43 EST




S&P U.S. Not-For-Profit Transportation Infrastructure 2026 Outlook: Green Lights Ahead Despite Tariff Ambiguity And Growing Capital Programs

Sector View: Stable for all asset classes

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09-Dec-2025 | 12:38 EST




Fitch U.S. Public Finance Transportation Infrastructure Outlook 2026.

Fitch expects a stable macroeconomic backdrop to marginally lift transportation volumes and revenues in 2026. Ports diverge from the neutral trend with tariffs expected to weaken consumer appetite for imported goods, resulting in lower volumes ahead.

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Tue 09 Dec, 2025 – 4:48 PM ET




S&P U.S. Charter Schools 2026 Outlook: Stable Today While Pressure Points Are Signaling Rising Vulnerabilities

Sector View: Stable

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10-Dec-2025 | 14:50 EST




Fitch U.S. Community Development and Social Lending Outlook 2026

The affordable housing sector faces unprecedented complexity in 2026 as federal policy shifts elevate tax incentives, but direct program funding is increasingly at risk. Operational uncertainty, high construction costs, and labor shortages are pressuring project delivery and financial performance.

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Wed 10 Dec, 2025 – 10:17 AM ET




Fitch Publishes Updates US Public VRDOs and Commercial Paper with External Liquidity Rating Criteria

Fitch Ratings has published an updated version of its “U.S. Public Finance Variable-Rate Demand Obligations and Commercial Paper with External Liquidity Rating Criteria”. This report replaces the prior version published on Dec. 12, 2024. The key elements of Fitch’s rating criteria remain consistent with those of its prior report.

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Tue 09 Dec, 2025 – 4:23 PM ET




S&P 2026 U.S. Transportation Activity Estimates: Steady But Slower Growth With Modest Port Decline

Key Takeaways

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09-Dec-2025 | 12:24 EST




JPMorgan Seeks to Turn Muni Funds With $840 Million Into ETFs.

JPMorgan Asset Management is seeking to convert two municipal-bond mutual funds with over $840 million of assets into ETFs in 2026, underscoring the growing popularity of the products.

The board for the JPMorgan California Tax Free Bond Fund and the JPMorgan New York Tax Free Bond Fund will consider the conversion in February, according to a filing Tuesday. If approved, the flip is expected to take place in June.

Both funds focus on investing in investment-grade muni bonds from California and New York, respectively. Those states are both home to wealthy residents who favor tax-exempt bonds as a way to reduce tax bills. Both have seen their assets grow year-to-date.

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Bloomberg Markets

By Amanda Albright

December 9, 2025




Fitch U.S. Public Finance Ports - Peer Credit Analysis

This Fitch Ratings report highlights the operating and financial performance of Fitch-rated ports in the U.S. It provides an annual, point-in-time assessment of these ports. Ratios for each issuer are determined using audited information or additional information received from the issuer and reflect circumstances unique to each credit. This report excludes corporate-like issuers, public-private partnerships and project financings.

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Fri 12 Dec, 2025 – 3:20 PM ET




Fitch U.S. Public Finance Ports Data Comparator: 2025

Fitch Ratings’ 2025 U.S. Ports Data Comparator contains financial data for 14 publicly rated issuers. This tool enables clients to compare indicators across different attributes, rating categories, and years. The current edition offers a snapshot of the financial status of entities as of December 5, 2025. Median calculations, located at the top of the table, update dynamically when the table view is altered using the heading filters. This functionality allows clients to modify the scope of the dataset and display the respective median values.

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Fri 12 Dec, 2025 – 3:22 PM ET




Bad Moon Rising: Navigating Uncertainty in Federal-Exposed Municipal Credit

Federal-exposed sectors and credits are facing rising uncertainty amid shifting policies. Head of Municipal Fixed Income Greg Steier and Credit Analyst Kate Fuller examine how these evolving federal policies are reshaping risk profiles for exposed sectors and credits, and what investors should watch for next.

When it comes to credit, we don’t shoot for the moon. Instead, we seek durability, which we view as resilience to a wide variety of economic and political circumstances. Over the last year, federal aid, once viewed by our team as a source of credit strength, has become increasingly politicized. As a result, sectors and credits with large exposures to the federal government – through the local economy, appropriations, or grant funding – now face increased uncertainty. We also expect to see a shift in the funding burden away from the federal government. Consequently, there’s a bad moon on the rise for some, including states, local governments, and other not-for-profit entities.

The impact of the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) became law in July 2025, and with it came sweeping tax and policy provisions with implications for municipal credit. Medicaid cuts of $900 billion by 2034 and significant changes to the Affordable Care Act (ACA) grabbed headlines. The changes include more stringent eligibility requirements for enrollment, a reduction of the provider tax cap in Medicaid expansion states, and new limits on state-directed payment programs. The cumulative impact of these modifications will ultimately include less covered lives, lower reimbursement rates for providers, and less federal dollars flowing in support of Medicaid-related programs.

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bbh.com

December 10, 2025




Improving Early-Stage Cost Estimates for Utility Projects.

Executive Summary

Accurately estimating utility project costs in the early stages of the project lifecycle is difficult, with systematic assumptions leading to significant deviations for portfolio planning and budgeting. Traditional methods often fall short in early project stages, relying on limited data and subjective judgment, which can result in wide variances and uncertainty. Advances in machine learning offer a transformative solution: by analyzing patterns in historical project data, ML models can deliver more precise and reliable early cost estimates. This data-driven approach not only streamlines construction and reduces costs but also improves infrastructure quality. As the models mature, they could even enable near real-time cost simulation during program planning, which could revolutionize how utilities structure multi-year capital programs.

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Exponent Inc – Merih Tekeste and Liyu Wang

12/12/25




Playing the Long Game in Public Finance.

Success in the coming years will require sustainability, adaptation and perseverance, especially as AI both enhances and disrupts government. Professional leaders need to look beyond the short term, facilitate change where needed, and reinvent themselves.

As 2025 comes to a close, this is a worthwhile time for public finance professionals and public officials to reposition themselves to master a shape-shifting fiscal landscape, new technologies, staffing challenges and unknown unknowns. Many of their contemporaries will try to cope with the accelerating pace of change by muddling through and playing it safe. Traditional bureaucratic responses may work for some, but they run the risk of leaving the foot-draggers hopelessly out of touch and eventually obsolete.

Survival and success for most professionals in the field of public finance will come easier to those who accept the inevitability of change, adapt to new technologies, avoid gimmicks, promote and practice continuous improvement, orchestrate long-term thinking by those around them, and brush up on their own self-awareness and interpersonal skills.

The most familiar and quantifiable aspect of this long game is fiscal sustainability. For starters, that requires a sober review and projection of the jurisdiction’s revenue and expense trends to question whether each year’s budget has habitually become a game of kicking the can to the next year and one’s successors. At a minimum, a fresh five-year financial forecasting exercise is now timely.

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governing.com

OPINION | December 9, 2025 • Girard Miller




Municipal Bond Stress Is Isolated — Here’s Why It Matters

Municipal defaults remain rare, but recent data shows a widening gap between the safest and riskiest sectors, highlighting the need for careful credit research and selective sector exposure.

Key Takeaways:

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vaneck.com

by Tamara Lowin
Senior Municipal Credit Analyst

December 09, 2025




SIFMA US Economic Survey.

SIFMA’s Economic Advisory Roundtable forecasts 1.8% GDP growth in 2025 and 2.2% in 2026, with upside risks from lower tariff impacts, productivity gains, and consumer spending. Inflation expectations remain anchored, though core PCE stays above 2%. “This is a notable improvement from the estimates made back in the 1H of 2025,” said Roundtable Co-Chair Scott Anderson, BMO.

Key Takeaways




Cities Brace for Budget Strains.

Cities nationwide are tightening their budgets as revenue growth slows and federal COVID-era aid phases out, according to the latest National League of Cities (NLC) fiscal survey. After enjoying several years of stabilization supported by pandemic relief, many municipal finance leaders now report rising expenses and greater uncertainty heading into 2026.

Spending increased 7.5% in FY 2024, but that pace plummeted to 0.7% in FY 2025, NLC found. At the same time, revenue growth, which rose 3.9% in 2024, is now expected to drop 1.9% in 2025, forcing many cities to consider cuts, hiring freezes or delayed capital projects.

The decline in confidence is stark: 52% of finance officers said they could meet their city’s financial needs in FY 2025, down from 64% just one year earlier. Optimism falls further looking ahead to 2026, where only 45% feel confident.

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constructionowners.com

Construction Owners Editorial Team

November 27, 2025




A Shifting Trump-Era Public Finance Landscape.

State and local financial managers face the impact of federal aid cutbacks, plus new rules and even some opportunities. It’s time to focus on what’s practical and necessary, both near and longer term.

When it comes to the federal-state-local fiscal relationship, the Trump administration and its allies in Congress have driven more changes in less than one year than any other presidency since Franklin Roosevelt’s, most of them going in the opposite direction politically. A clear takeaway for state and local financial managers and their policymaking bosses is that they can no longer count on fiscal federalism — dollars from Uncle Sam — to alleviate budgetary problems.

But there are also some quirky features of this new landscape that present more obscure challenges and even some economic development possibilities. For the public workforce, implementing new payroll features to comply with the 2025 tax law, particularly its overtime taxation provisions, will be the first order of the day, but that’s a bookkeeping and software sideshow in the long run. The main event is that many states’ and some municipalities’ budget reserves are shriveling.

While states and localities collectively face cost shifting for essential functions once paid for by Uncle Sam, such as cybersecurity networks, the most important task for many in 2026 will be a review and reset of their financial reserves policies. If Uncle Sam is now prone to write counter-cyclical checks to taxpayers rather than sending money to states in the next recession, and less likely to provide natural disaster recovery aid, then rainy-day funds may need to be beefed up, not depleted in futile efforts to provide end-of-life support to formerly federally funded programs that remain popular locally.

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governing.com

OPINION | November 25, 2025 • Girard Miller




S&P U.S. States 2026 Outlook: As States Face Widening Challenges, Their Actions Likely Will Uphold Credit Stability

Sector View: Stable

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03-Dec-2025 | 10:14 EST




S&P U.S. Local Governments 2026 Outlook: Local Governments Show Resilience, K-12 School Districts Are On Shaky Ground

Sector View: Stable

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04-Dec-2025 | 11:46 EST




Fitch: U.S. States, Locals Face Shifting Headwinds with Strong Resilience

Fitch Ratings-New York-03 December 2025: Fitch Ratings has assigned a Neutral sector outlook to U.S. state and local governments in 2026, saying that the vast majority of Rating Outlooks are Stable. Credit quality should remain consistent and strong as governments manage slower growth with robust reserves, liability reductions and prudent budgets. Economic performance has exceeded expectations. However, risks are emerging from a slower labor market, tariff-driven inflation, and changes in federal responsibilities. Even so, most governments should be able to absorb these pressures due to strong financial resilience.

Macro risks to revenue include the potential for escalating tariff pass‑throughs, which may raise the Consumer Price Index (CPI) and curb consumption; softening payroll growth and potential layoffs; and a slowdown in IT-related capex that could weigh on equity markets and income tax collection in market‑sensitive states like California and New York. In addition, housing indicators are weakening, and Fitch expects the residential housing sector to slow in 2026. This could pressure local sales and transaction taxes, as well as assessed property values over time.

Spending pressures persist. States face uncertainty around changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) implemented under H.R. 1. Wage growth for public employees remains high, increasing strain on budgets, particularly for local governments. The shift of federal costs to states and local governments could be negative for credit where financial resilience is thinner.

Operating trajectories are broadly stable. Most state and local governments used prior surpluses to build reserves, pay down debt and invest in one-time capital needs, though some with pre-existing challenges still face fiscal constraints. Ongoing implementation of state tax policy changes and softer economic growth could drive volatility in revenue and budgets. For local governments, lags in property tax assessments and tax collection trends allow time to adjust to changing conditions, while an economic downturn would create more immediate strain on governments that rely on sales and income taxes.

Fitch’s “U.S. State and Local Governments Outlook 2026” report is available at www.fitchratings.com




Fitch U.S. State and Local Governments Outlook 2026.

Fitch Ratings expects U.S. state and local governments to maintain stable credit quality through 2026 despite economic uncertainties. Robust reserves and prudent budget management will help governments manage fiscal risks and maintain financial resilience.

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Wed 03 Dec, 2025 – 10:09 AM ET




S&P U.S. Not-For-Profit Acute Health Care 2026 Outlook: Resilient For Now, With Increased Credit Risks On The Horizon

Sector View: Stable

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01-Dec-2025 | 13:49 EST




Fitch: Policy Headwinds Weigh on U.S Higher Education Outlook

Fitch Ratings-Chicago-04 December 2025: U.S. higher education faces rising challenges in 2026, according to a new Fitch Ratings report. Fitch’s outlook for the sector is ‘deteriorating’ based on the increasing headwinds from federal policy, enrollment, and other macroeconomic conditions that will affect revenue growth prospects and operating margins in the coming year.

Tuition revenue, which is often the largest revenue source for colleges and universities, remains constrained as demographic trends and financial aid policy changes reshape domestic student decisions and as prospective international students face numerous hurdles. While state funding improved for the 12th straight year, slowing revenue growth and shifting federal cost burdens beyond 2026 are risks.

Despite these headwinds, two-year programs are driving sector growth, and institutions are pursuing partnerships, asset monetization, and alliances to manage costs. We expect consolidation to accelerate, especially for schools in regions with economic and demographic stress. Capital spending will likely rise in 2026 to address deferred maintenance and housing needs, but additional debt may otherwise hamper overall operating cost flexibility.

Fitch’s Rating Outlook remains Stable for most rated institutions, though pressure persists for those rated ‘BBB’ and below. “Broader trends, including potentially disruptive AI-driven labor market changes, may further influence demand and program offerings across the sector,” said Senior Director Emily Wadwhani.

The full report is available at www.fitchratings.com.




S&P U.S. And Canadian Municipal Toll Road Ratings And Outlooks: Current List And Recent Rating Actions

View the Current List.

25-Nov-2025 | 16:43 EST




S&P U.S. Not-For-Profit Higher Education 2026 Outlook: Lower Expectations For Higher Education

Sector View: Negative

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02-Dec-2025 | 10:44 EST




S&P U.S. Public Power And Electric Cooperative 2026 Outlook: Rising Inflation And Capital Spending Stressors Perpetuate Negative Rating Pressures

Sector View: Negative

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08-Dec-2025 | 13:27 EST




Fitch U.S. Public Finance Higher Education Outlook 2026.

Fitch Ratings anticipates a ‘deteriorating’ credit environment for U.S. Public Finance Higher Education in 2026 relative to 2025. Revenue growth prospects remain strained, particularly for net tuition as the domestic undergraduate student base shrinks and international students face multiple obstacles.

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Thu 04 Dec, 2025 – 1:57 PM ET




How ‘Super Roofs’ Reward Insurers, Cat Bond Investors and Homeowners.

Investors snapped up a catastrophe bond tied to North Carolina homeowners and their insurer for installing super roofs.

Takeaways by Bloomberg AI

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Bloomberg Green

By Leslie Kaufman

December 1, 2025




The ‘Game Changing’ Cat Bond Incentivizing Adaptation.

Insurers are struggling as climate change-fueled damage intensifies. So are homeowners. Clearly something has to change.

Enter a novel program run by North Carolina’s insurer of last resort that incentivizes homeowners to install roofs that can stand up to extreme winds. It’s still relatively small, but it comes at a time when the federal government is pulling back.

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Bloomberg Green

By Leslie Kaufman and Laura Millan

December 1, 2025




Explaining the Decline in WIFIA Loan Volume: Part 1

What is happening at EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) loan program?

The mysterious issue is not the near-complete cessation of loan closings under Trump 2.0. The reason for that is clearer: the Office of Management and Budget’s pause on federal grants and loans in February combined with continuing federal upheaval under this administration.

Much harder to explain is the steady decline in program loan volume since the end of 2021 through January 2025, despite rising U.S. water sector capex. During this period, WIFIA had a supportive Biden administration, plenty of funding and was run as efficiently as ever. Yet, the program’s annual executed loan volume fell from a calendar year peak in 2021 of over $5.5 billion to under $2 billion in 2024.

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Water Finance & Management

November 24, 2025




Muni Strategists Anticipate Issuance to Top $600 Billion in 2026.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Aashna Shah

December 5, 2025




ETF Demand Reshapes Muni Dynamics.

Strong demand for municipal exchange-traded funds is shifting the state and local bond market’s dynamics and masking flow trends. A single mutual fund conversion last week made what was actually an inflow look like nearly $1 billion in outflows, according to JPMorgan.

Bloomberg’s municipal bonds reporter Maxwell Adler discussed the story on “Bloomberg Markets” with Vonnie Quinn.

Watch video.

Bloomberg Markets – Muni MomentTV Shows

November 26th, 2025, 11:25 AM PST




ETF Demand Reshapes Muni Dynamics: Bloomberg Muni Moment

Strong demand for municipal exchange-traded funds is shifting the state and local bond market’s dynamics and masking flow trends. A single mutual fund conversion last week made what was actually an inflow look like nearly $1 billion in outflows, according to JPMorgan. Bloomberg’s municipal bonds reporter Maxwell Adler discussed the story on “Bloomberg Markets” with Vonnie Quinn.

Watch video.

Bloomberg Markets – Muni MomentTV Shows

November 26th, 2025, 11:25 AM PST




The Muni Rally Shines Spotlight on These ETFs.

As 2025 winds down, a rocky beginning for municipal bonds is giving way to a smoother ride to the finish. In the latest iteration of its Active Fixed Income Perspectives, Vanguard noted a strong showing by municipal bonds in Q3. Given this, fixed income investors may want to position their portfolios for muni exposure if they haven’t already.

An oversupply of munis due to heavy issuance to start the year has turned for the better. As the rate-cutting cycle ensues through Q4 and into next year, municipal bonds can offer investors a combination of yield and strong credit fundamentals. Heavier demand in Q3 saw munis outperform broad bond indexes.

“The municipal bond market enjoyed a rally in the third quarter, outperforming the Bloomberg US Aggregate Index,” the report said. “Yields moved lower across the curve, but longer maturities delivered the best returns due to higher duration. The key feature of this market remains a historically steep curve with highly attractive long-end valuations and richer pricing in the short end.”

Here are a few solutions to consider for muni exposure by way of Vanguard’s low-cost ETFs.

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etfdb.com

by Ben Hernandez

Nov 26, 2025




Active Muni-Bond Funds for the Core of Your Portfolio.

These mutual funds and ETFs receive top ratings from Morningstar’s analysts.

Morningstar’s Guide to Active Fixed-Income Investing lays out the case for active bond funds. In short, the complexity and inefficiencies of the bond market spell opportunity for skilled portfolio managers.

While most investors focus on taxable bonds, the argument for active investing applies to the municipal-bond market as well. In “How to Use Municipal-Bond Funds in a Portfolio,” Amy Arnott and Margaret Giles provide a primer on the asset class, part of Morningstar’s portfolio basics series. Muni bonds are issued by state or local governments to raise money for day-to-day operations and public projects. The interest paid on these bonds is usually exempt from federal income taxes and may also be exempt from state and local taxes for investors who live in the state or municipality where the bond was issued.

Investors, particularly those in higher tax brackets, can therefore benefit from holding municipal-bond funds in their taxable accounts. Strategies in the muni national intermediate Morningstar Category are appropriate holdings for a core portfolio, as Morningstar’s Role in Portfolio framework explains. To home in on worthwhile actively managed offerings, the Morningstar Medalist Rating is a good place to start, as it identifies funds that are likely to outperform over a market cycle.

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morningstar.com

by Laura Lallos

Dec 2, 2025




Fitch: U.S. State Budgets Tested by Slower Revenue Growth and Federal Policy Shifts

Fitch Ratings-New York-19 November 2025: U.S. state budgets are well-positioned to address slower revenue growth and increasing economic and policy uncertainty in fiscal 2026, according to Fitch Ratings in its latest annual report.

State budgets remain fiscally sound following several years of strong post-pandemic economic and revenue performance, according to Senior Director Karen Krop. ”However, states now face the highest level of uncertainty since the early pandemic months, driven in part by economic unease and federal policy changes. Despite these pressures,“ said Krop, ”Fitch expects states credit quality to remain robust, supported by prudent operating performance and substantial fiscal buffers.”

Most states anticipate slow revenue growth in fiscal 2026, reflecting expectations of subdued U.S. GDP growth, ongoing inflation and the fading effect of federal stimulus. Fiscal 2026 is seeing more tax policy action, with several states lowering income tax rates or flattening brackets, while others are raising revenues to close gaps or meet program goals. Fitch notes states pursuing aggressive tax reductions may see heightened credit pressure if revenue growth fails to accelerate.

Medicaid and education remain the primary drivers of state spending, with federal policy changes, notably H.R. 1, introducing new budgetary uncertainties. However, states continue to fund initiatives in housing and homelessness prevention and climate resilience, among other high priorities.

“U.S. States: Budgets Stable Amid Uncertainty” is available at www.fitchratings.com




NASBO Fall 2025 Fiscal Survey of States.

With data gathered from all 50 state budget offices, this semi-annual report provides a narrative analysis of the fiscal condition of the states and data summaries of state general fund revenues, expenditures, and balances. The spring edition details governors’ proposed budgets; the fall edition details enacted budgets.

Click here to view the NASBO Survey.




City Financial Officers Approach 2026 With Caution.

Reduced revenues and rising costs leave municipalities tightening their budgets, per a new National League of Cities report.

In Brief:

Municipalities are already spending more cautiously this year, and they expect that trend to hold in 2026 as cities grapple with rising costs, lower revenue, and the wind-down of federal aid, per a new report from the National League of Cities.

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governing.com

by Jule Pattison-Gordon

November 24, 2025




U.S. States: Budgets Stable Amid Uncertainty - Fitch Special Report

State budgets have remained stable in fiscal 2026, despite potential economic weakness and federal policy uncertainty. Revenues are growing slowly, with states adapting spending to a slower trend and maintaining fiscal resilience.

Access Report

Wed 19 Nov, 2025 – 2:46 PM ET




Bitcoin News: First BTC-Backed $100M Municipal Bond Launches to Tap $140T Debt Market

In a major Bitcoin news today, New Hampshire has greenlighted the first-ever BTC-backed municipal bond. This marks a big milestone that could open the door to the $140 trillion global debt market for Bitcoin and digital assets. The move comes after New Hampshire became the first state to pass a “strategic Bitcoin reserve” bill into law.

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Yahoo Finance

by Varinder Singh

Tue, November 18, 2025




New Hampshire Approves First-Ever $100 Million Bitcoin-Backed Municipal Bond.

New Hampshire has become the world’s first government to approve a $100 million Bitcoin-backed municipal conduit bond, a move greenlit by the state’s Business Finance Authority that could usher digital assets into the $140 trillion global debt market.

New Hampshire has become the first state in the U.S. — and the first government globally — to approve a municipal bond backed by Bitcoin, a structural breakthrough that could open the door for digital assets to enter the $140 trillion global debt market.

On Monday, the state’s Business Finance Authority (BFA) approved a $100 million Bitcoin-backed conduit bond, allowing private companies to borrow against over-collateralized Bitcoin held in custody, according to exclusive reporting from Eleanor Terrett at Crypto in America.

The bond is not backed by the state or taxpayers; instead, the BFA acts strictly as a facilitator, approving and overseeing the deal while repayment risk rests entirely on the Bitcoin collateral held by BitGo.

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bitcoinmagazine.com

By Micah Zimmerman

November 19, 2025




Bitcoin-Backed Bonds: A New Era for Municipal Financing and Fintech Innovation

New Hampshire is doing something that no other state has done before. They’ve given the green light to a Bitcoin-backed municipal bond, which is a first for the US. It’s a major milestone for the convergence of traditional finance and digital assets. The potential here is massive, with access to a $140 trillion global debt market. But, of course, there are opportunities and challenges for local governments and fintech innovators alike.

Bitcoin-Backed Bonds Rising

These Bitcoin-backed bonds are a new beast in the financial world. They blend traditional debt securities with the potential upside of Bitcoin. Recently, New Hampshire’s Business Finance Authority (BFA) approved a $100 million bond that allows private companies to borrow against Bitcoin held by a licensed custodian. This means they can raise capital without risking state funds or taxpayer dollars.

Here’s the kicker: the bond requires borrowers to put up about 160% of the bond’s value in Bitcoin. If the collateral dips below a certain point, an auto-liquidation process kicks in to safeguard investor interests. If this works, it could set the stage for similar bonds popping up across the country, opening the door for a new class of crypto-collateralized debt.

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OneSafe

OneSafe Editorial Team

Nov 19, 2025




Data Centers, Local Zoning, and Land Development: How to Protect Your Project From Costly Delays - Ballard Spahr

Data center development continues to surge, yet local zoning and land development frameworks have not kept pace. Across the country, projects are encountering delays and added risk due to outdated ordinances, procedural gaps, inconsistent interpretations by local officials, and increasing public opposition. Even well-capitalized projects can be threatened by these issues. These risks can be managed with careful planning, clear documentation, and guidance from lawyers experienced in complex land use and data center development matters. Understanding where projects most often run into trouble is the first step toward preventing setbacks and initial and future delays in delivering data center projects on time and on budget.

Secure Clear and Final Land Use Approvals

Many zoning codes do not explicitly address data centers. When ordinances fail to address data centers expressly, approvals often hinge on how individual zoning officers interpret terms such as industrial, utility, or technology facility. That ambiguity can open the door for appeals, even after substantial capital has been committed. Before proceeding with site work, ensure approvals are not only obtained but are also final and unappealable. Investors and lenders should consider obtaining zoning opinions when available or other supporting legal analysis to confirm the approval and land use status of a given site before development commences.

Verify Proper Public Notice Procedures

Establish a clear record of compliance with all public notice requirements. Even minor procedural missteps, such as missed postings, incomplete filings, or improper notice delivery, can extend or invalidate appeal periods. In some cases, the appeal period might never begin, leaving completed projects vulnerable to challenge months or even years later.

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by Matthew N. McClure, Jill S. Parks, Bruce F. Johnson, Alicia B. Clark, and Dominic J. De Simone

November 17, 2025

Ballard Spahr




Orrick: Powering Data Centers

Megawatts to Megabytes: Orrick’s Guide to Developing, Financing & Powering Data Centers

How can data center developers secure reliable power when U.S. demand is growing 23% annually and interconnection delays now stretch to 5+ years? This guide examines practical strategies for powering data centers amid grid constraints and clean energy requirements.

The guide covers power generation options from nuclear and geothermal to natural gas and fuel cells, grid interconnection strategies including co-located generation and replacement rights, and contracting mechanisms such as Clean Transition Tariffs, behind-the-meter PPAs, and virtual PPAs. It also addresses key regulatory requirements including FERC interconnection rules, state supply restrictions and market-based rate authority.

Read this excerpt from our guide Megawatts to Megabytes.

November.20.2025




The Water Infrastructure Investments States Will Need.

The bill is coming due after years of underinvestment in water infrastructure. New research highlights needs in each state and the economic benefits from meeting them.

In Brief:

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governing.com

by Carl Smith

November 20, 2025 •




Riskiest Municipal Tobacco Bonds Hit by Smoking Declines.

The riskiest tobacco bonds have slid this year to the second-worst performer in high-yield municipal debt as smoking declines at a faster rate than assumed under the securities’ structure.

The debt, backed by settlement payments states receive from tobacco companies, has declined 4.1%, compared with a 2.6% gain for the high-yield tax-exempt market, according to data compiled by Bloomberg. Only high-yield transportation bonds, hit by the struggles of Florida’s Brightline private railroad, have fared worse.

“There’s uncertainty about cash flows, there’s consumption declines, and I think the buyer base is just shrinking,” said Jerry Solomon, a portfolio manager at Capital Group.

Continue reading.

Bloomberg Markets

By Martin Z Braun

November 24, 2025




Student-Athlete Salaries Pose New Worry for Higher-Ed Munis.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Elizabeth Rembert

November 20, 2025




Bloomberg Muni Moment: United Airlines Shelves Two Bond Offerings

United Airlines Inc. shelved two municipal bond issues as the volatility hitting other asset classes makes a rare appearance in the state and local government debt market. Bloomberg’s Aashna Shah has more on the story.

Watch video.

Bloomberg Markets – Muni MomentTV Shows

November 20th, 2025




United Taps Munis for $522 Million Houston Airport Deal.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Aashna Shah and Sri Taylor

November 18




United Pulls $248 Million Junk Muni Debt for Houston Airport.

Takeaways by Bloomberg AI

United Airlines Inc. shelved two municipal bond issues as the volatility hitting other asset classes makes a rare appearance in the state and local government debt market.

The airline had tried to tap muni investors to finance facilities at George Bush Intercontinental Airport in Houston. An issue for $102.8 million was expected to finance a portion of the design and construction of a ground services equipment facility and a separate $145.6 million series go toward a new catering center, according to offering documents. The bonds were high yield, carrying a BB+ rating from S&P Global Ratings.

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Bloomberg Industries

By Aashna Shah

November 19, 2025




NASBO: Understanding State Budget Gaps

View the NASBPO report.

National Association of State Budget Officeres

By Kathryn White




Report: Cities Have $1.4 Trillion in Debt

San Francisco, Nantucket, New York City, Ocean City, and Miami Beach are the cities with the most per capita debt.

Nationally, cities report $1.4 trillion in debt, equivalent to approximately $7,000 per capita, according to Reason Foundation’s State and Local Government Finance Report.

The cities of New York, Chicago, Los Angeles, the city and county of San Francisco*, and Houston report the most total liabilities.

The $1.4 trillion in debt carried by cities, towns, and other incorporated municipalities represents 23% of total state and local government debt found in the State and Local Government Finance Report, which can be explored interactively in Reason Foundation’s GovFinance Dashboard.

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reason.org

by Mariana Trujillo
Managing Director

by Jordan Campbell
Managing Director

November 17, 2025




Commentary: The Future Must Be Full-Cost Pricing for Water Utilities

For anyone tracking the U.S. water industry – a sector encompassing both water and wastewater providers, largely managed by municipal entities – a paradox unfolds. Reports frequently highlight consistent rate increases while simultaneously detailing the alarming deterioration of vital water infrastructure. We discover, with the benefit of hindsight, that rates have often climbed significantly faster than core inflation, sometimes two to three times as quickly.

Yet, the infrastructure these rates are meant to support often receives the kind of unsatisfactory grades from the American Society of Civil Engineers that would once lead to serious discussions during parent-teacher conferences. If you scan the American Water Works Association’s (AWWA) State of the Industry Report, you’ll uncover another interesting observation running contrary to the rapidly rising rates: utility managers recently ranked financial sustainability among their top challenges.

Despite rapidly rising rates, the industry appears to be struggling to keep pace financially, whether we look at the health of infrastructure or the overall sentiment among executives, though we acknowledge these are subjective measures. Regardless, healthy water infrastructure is essential to our communities, and keeping those systems healthy comes with necessary, ongoing investments.

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Water Finance & Management

By Jason Mumm

November 17, 2025




S&P U.S. Not-For-Profit Health Care Rating Actions, October 2025

Overview

In October 2025, S&P Global Ratings maintained 29 ratings without revising the outlooks, took three positive ratings actions and five negative rating actions in the U.S. not for profit health care sector. In addition, we revised three outlooks favorably, and one outlook unfavorably without changing the ratings. We also assigned a rating to two new issuers, Casa Colina Inc., Calif. and Monroe Sustainable Energy Partners LLC, Ariz. (an entity whose rating is based on that of Rochester Regional Health’s credit quality).

Included in the month’s activity were ratings assigned to seven new debt issuances for currently rated organizations, all of which were affirmed except for one downgrade on Craig Hospital, Colo. In addition, included in the month’s three positive rating actions was Jennie Stuart Medical Center, Ky., related to the application of our “Group Rating Methodology” criteria (July 1, 2019) following its acquisition by Deaconess Health System Inc, Ind. (A+/Positive). Included in the month’s five negative rating actions was Louisville Medical Center, related to application of our “Rating Approach To Obligations With Multiple Revenue Streams” criteria (Nov. 29, 2011) following our downgrade on UofL Health.

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14-Nov-2025




Munis’ ‘Frenetic’ Trading Pace Smashes Record.

Investors and dealers are trading municipal bonds at a record pace this year, driven by strong government sales and a burst of volatility tied to tariffs and interest rate moves. Bloomberg’s Shruti Singh has more on the story.

Watch video.

Bloomberg Markets – Muni Moment TV Shows

November 13th, 2025, 12:54 PM PST




Trump Buys Another $82 Million of Corporate and Municipal Bonds.

Takeaways by Bloomberg AI

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Bloomberg Politics

By Kevin Whitelaw and María Paula Mijares Torres

November 15, 2025




Survey Shows ETF Adoption Continues to Trend Higher.

Stocks might still be the preferred investment of choice. But exchange traded funds (ETFs) are quickly gaining ground. According to a “People & Money” survey conducted by BlackRock in conjunction with YouGov, ETF adoption continues to expand while also seeing a shift demographically.

ETFs are already having a record year. They’ve surpassed the previous year’s $1.14 trillion inflows. And adoption is projected to rise, according to the survey. So it could mean more broken records in the coming years.

“ETFs have revolutionized how millions of people invest today,” said Elise Terry, head of U.S. iShares at BlackRock. “These findings reflect growing demand for diversified exposures through efficient, transparent vehicles — and a rising appetite for choice in how Americans seek to grow their wealth. This momentum underscores the need to accelerate innovation, broaden access, and scale education to pursue better outcomes for all investors.

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etftrends.com

by Ben Hernandez

November 14, 2025




Muni Bond ETFs Launch as Conversions Continue.

Two issuers brought actively managed municipal bond ETFs to market on Monday. AllianceBernstein (AB) and Franklin Templeton rolled out funds targeting different slices of the muni space, converting their mutual funds into ETF wrappers as muni mutual fund conversions accelerate across the industry.

AB launched two actively managed ETFs on the New York Stock Exchange. This added to the firm’s growing suite of fixed income ETF offerings, according to a Monday press release.

The AB New York Intermediate Municipal ETF (NYM) and AB Core Bond ETF (CORB) began trading with Jane Street serving as the lead market maker for both funds, according to the release.

The launches add to AB’s municipal platform. Its platform has grown from $35 billion in AUM in 2016 to over $83 billion as of August 31, according to the release. October 2025 saw 15 mutual fund conversions among a record 137 total ETF launches, according to FactSet.

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etfdb.com

by DJ Shaw

Nov 11, 2025




US Voters Approve $12B Of Borrowing For Municipalities.

In this week’s elections, American voters approved more than $12 billion in state and local borrowing, signaling continued support for infrastructure and public investment.

Bloomberg’s Muni reporter Aashna Shah discusses the story on “Bloomberg Markets” with Scarlet Fu.

Watch video.

Bloomberg MarketsTV Shows – Muni Moment

November 6th, 2025, 11:54 AM PST




Fitch: Federal Spending Cuts Push More Fiscal Risk to State, Local Governments

Fitch Ratings-New York-07 November 2025: State and local governments are increasingly assuming fiscal responsibilities that have typically been shouldered by the federal government. This could amplify pressures during periods of fiscal stress and increase state and local government credit risk, Fitch Ratings says in its new report.

Trump administration and congressional policy initiatives, as well as long-term challenges to the U.S. sovereign’s finances, are resulting in a transferring fiscal obligations and risks to state and local governments.

States with the lowest levels of financial resilience are likely to be the most vulnerable to rating transition if the federal and state/local relationship substantially and permanently shifts. Robust dedicated operating reserves relative to annual budgets most clearly demonstrate states’ financial resilience and provide a key credit risk mitigant.

The 2025 tax and spending bill introduces significant changes to SNAP cost-sharing requirements and changes to states’ ability to levy provider taxes for Medicaid that will directly impact state budgets. Federal spending reductions under the law start out modestly and grow over multiple years, according to the Congressional Budget Office’s analysis. This gives states time to plan budgets accordingly, although states will have less flexibility in a lower growth or recessionary environment.

Significant changes to the scale of federal FEMA aid would increase credit risk for state and local governments at a time when billion-dollar natural disasters are increasing in frequency and cost. State and local governments have flexibility to manage increased costs following natural disasters while awaiting federal reimbursement, but federal support can be important to maintaining long-term fiscal and credit stability. A Fitch analysis found that Louisiana, Hawaii and Florida have the highest levels of federal disaster aid relative to their economies.

The U.S.’s fiscal challenges — with general government debt reaching 124.6% of GDP by 2027 — may limit its capacity to provide meaningful countercyclical support to states and municipalities during a downturn.




Fitch: Shift in Federal Responsibilities May Amplify State, Local Government Pressures in Downturn

A sustained shift in federal responsibilities will increase state and local government budget demands, exposing them to more credit risk. Federal spending cuts to social services and disaster aid will have significant impacts on state budgets and credit stability.

Access Report

Fri 07 Nov, 2025 – 12:57 PM ET




Fitch Takes Various Rating Actions on U.S. Enhanced Municipal Bonds and TOBs.

Fitch Ratings – New York – 04 Nov 2025: Fitch Ratings has taken various conforming rating actions on U.S. enhanced municipal bonds and tender option bonds (TOBs) corresponding to actions taken on their associated enhancement providers, liquidity providers or underlying bonds.

Key Rating Drivers

The U.S. enhanced municipal bonds and TOB ratings addressed in this rating action commentary (RAC) are dependent ratings, being the subject of pre-existing rating dependencies. A list of the U.S. enhanced municipal bond and TOB ratings actions can be seen via the “View Additional Rating Details” link below.

All rating actions announced in this RAC are directly driven by separately announced rating actions on associated enhancement providers, liquidity providers or underlying bonds. The most recent RAC with respect to the credit rating of each associated enhancement provider, liquidity provider or underlying bonds referenced herein sets out the key rating drivers and names and contact details of the relevant primary and secondary analysts and committee chair in relation to the credit ratings of such enhancement providers, liquidity providers or underlying bonds.

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S&P U.S. Brief: Federal Student Aid Caps Could Curb Demand For Graduate And Professional Programs

Changes to the federal student loan program in the approved U.S. tax and spending bill signed on July 4 could pressure some U.S. higher education institutions’ demand and/or operations, in S&P Global Ratings’ view. We see the most risk for schools with significant graduate and professional programs, and for specialty schools.

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04-Nov-2025 | 11:33 EST




Fitch: US Public Pension Market Volatility Exposure Remains High

Fitch Ratings-New York-03 November 2025: Robust market valuations in recent years have supported funding progress for U.S. state and local defined benefit pension plans. However, public pensions remain underfunded and fundamentally exposed to market volatility. A market shock could increase the burden of state and local pension liabilities and drive contributions higher, says Fitch Ratings. Governments with weaker liability metrics and high carrying cost burdens could be most vulnerable to rating pressure.

Post-global financial crisis, plan sponsors took various policy actions such as reducing benefits to new employees, using more conservative actuarial assumptions and discount rates, and increasing contributions. This helped stabilize plans and support funding improvement. But other trends, including higher allocations to alternative investments and steady demographic weakening, could amplify the effects of a market shock.

According to the Public Plan Database, alternative investments outside of traditional equity, fixed income and cash were 34% of pension portfolios in fiscal 2024, double the fiscal 2008 level. Allocations to increasingly complex categories of alternatives can include leverage or variable rate strategies that expose investors, including pensions, to greater losses. Many of these alternatives have not yet been tested in a downturn. The illiquidity of many alternative investments could also force plans with tighter cash flows to sell marketable assets at a loss to meet benefit or other obligations, such as capital calls.

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American Suburbs Have a Financial Secret.

Municipal bonds have become an unavoidable part of local governance—and their costs divide rich towns from poor ones.

One Sunday morning in March 1949, a group of nearly 300 people, clutching deck chairs and sleeping bags, lined up to buy new homes in what had, until recently, been a stretch of potato fields in central Long Island. They hoped to move to “fabulous Levittown,” as its developer, William J. Levitt, had branded his creation: more than 17,000 gleaming houses in an all-white community with freshly dug wells and newly paved roads. But that was the extent of the neighborhood—Levitt’s profits were in home sales, not city planning. In fact, his namesake had hardly any public infrastructure, and Levittown’s new political leaders needed to come up with money for maintenance, trash, and schools. So they took a gamble and decided to enter the municipal-bond market.

Selling bonds—essentially issuing buyers an IOU, plus interest—is a quick way for a government to raise funds. You, or someone you know, probably own a U.S. Treasury bond. But institutional investors—a mix of insurance companies, mutual funds, and private-equity firms—buy bonds too, including from local governments and school districts. Cities get money up front, and buyers are assured that they’ll turn a profit; this win-win proposition made many postwar suburbs take the plunge into the bond market. Throughout the 1950s, as private developers rapidly constructed new suburbs, school districts in Nassau County, where Levittown is located, increased their debt load by sixfold to meet the needs of their new residents. The problem was: Not every town and city was treated the same. Credit-rating agencies saw richer locales as very likely to repay their debts and gave them sweet deals on interest rates, which meant that these towns owed less to those who’d bought their bonds. The poorer places got shortchanged.

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The Atlantic

By Michael Waters

November 6, 2025




S&P: Why The Best Cyber Risk Management Assumes Failure

Key Takeaways

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07-Nov-2025 | 08:24 EST




S&P Beneath the Surface: Water Stress in Data Centers

Highlights

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Published Sept. 15, 2025




NLC: Economic Impacts of the Federal Government Shutdown on Local Communities

Read the NLC report.

National League of Cities

By: Christine Baker-Smith & Stephanie Martinez-Ruckman

November 7, 2025




Spending for Municipal Water Reuse to Grow Over Next Decade, Report Says.

According to a new report from global water market research firm Bluefield Research, capital expenditure (CAPEX) for municipal reuse infrastructure and treatment systems are forecasted to average $47.1 billion (USD) from 2025 through 2035.

Water reuse, the process of recycling treated wastewater for beneficial uses, represents a viable cornerstone of resilient water supply planning for utilities, municipalities, and industries, unlocking a potential surge in infrastructure investment across the United States.

The insight report, U.S. Municipal Water Reuse: Market Trends and Forecasts, 2025–2035, notes that the largest share of spending will be directed toward advanced treatment technology and facilities, which account for 42.3% of the 10-year outlook. Conveyance pipe networks (i.e., purple pipes) and engineering and design account for 40.4% and 12.4% of spending, respectively. Underlying this positive outlook are more than 600 projects in the planning and execution phases of development, advancements in state-level policies, and changing urban, agricultural, and industrial water needs.

Continue reading.

Water Finance & Management

by WFM Staff

November 6, 2025




Utilities Explore Private Credit in Potential First for Sector.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Josh Saul

November 10, 2025




Muni Market Sets Record as 2025 Bond Sales Eclipse $500 Billion.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Elizabeth Rembert

November 7, 2025




A Must-See Municipal ETF for Investors Seeking Income.

The equity arena is certainly booming with cheers following the Fed’s second rate cut. But the reaction from the fixed income crowd might be more mixed. Those particularly focused on maximizing their income might be wondering where they can achieve the yields they’ve been accustomed to the last few years amid this rate-cutting cycle. One area that should be up for consideration is high-yield municipal bonds.

The first half of the year saw muni issuance reach record levels. But as 2025 wore on, demand was starting to play catch-up. With a combination of credit quality and yield, munis have been garnering more interest from investors. Of course, the tax-free income certainly helps in attracting investor capital.

Vanguard recently released its Active Fixed Income Perspectives Q4 2025 report, noting that “investor flows have returned” to municipal bonds. Furthermore, the yields munis offer can be achieved across the full spectrum of the yield curve.

“Meanwhile, investors with the requisite risk tolerances can enjoy the yield pickup offered by intermediate, all-curve, and long-term municipal strategies,” the report said. It added that many investment-grade bonds with maturities under five years “are not offering enough yield to compete with U.S. Treasuries on a tax-equivalent basis.” It also said those seeking short-term exposure “can supplement portfolios with lower-rated (and thus higher-yielding) municipal bonds to justify the allocation.”

One place to look is the newest addition to Vanguard’s active fixed income ETF roster: the Vanguard High-Yield Active ETF (VGHY). The fund’s goal is simple — outperform the broad high-yield market — in the convenience of one active fund.

An Active, Must-See Muni Option

Because VGHY is actively managed, its portfolio managers can adjust the fund’s holdings as necessary to suit current market conditions. The high yield bond market carries its own nuances and complexities. So having an active strategy is almost paramount for exposure. Furthermore, VGHY has a competitively priced 0.22% expense ratio. Like the rest of its active fixed income ETFs, VGHY taps into the expertise and experience of the Vanguard Fixed Income Group.

“The addition of VGHY to Vanguard’s lineup exemplifies our decades-long commitment to disciplined credit investing,” said Michael Chang, head of high yield portfolio management at Vanguard, regarding VGHY’s launch in mid-September.

“This ETF is powered by a deeply integrated team of credit analysts, traders, and risk specialists who collaborate daily to uncover value and manage risk across the high-yield landscape,” he added. “Our goal is to deliver an actively managed solution that adapts dynamically to market conditions with precision and purpose to outperform its benchmark and peers.”

etftrends.com

by Ben Hernandez

November 5, 2025




Navigate the Nuanced Muni Market With This Active ETF.

After the first rate cut of 2025 and the prospect of more rate cuts to come, the capital markets are now wondering at what pace the U.S. Federal Reserve will institute them. For fixed income investors looking for options that balance credit quality and yield, municipal bonds should be considered.

In recent years, short-term bond funds have been the go-to option for a balance of yield that also mitigates rate risk with rising rates and inflation. Fixed income investors accustomed to the elevated yields now may need to step further out on the yield curve to supplant income lost from falling rates.

Rather than step too far out on the yield curve, intermediate bonds offer a Goldilocks option to extract more yield, while still mitigating rate risk. Corporate bonds are another option for higher yields, but investors may not want to assume the associated higher credit risk. This is where municipal bonds with intermediate-term maturities can assist.

The municipal bond market is vast and nuanced, requiring a certain level of experience and expertise to navigate the space. Rather than construct a portfolio of individual munis, an easier approach is via ETFs, specifically the MFS Active Intermediate Muni Bond ETF (MFSM).

Per the fund’s fact sheet, investors get a plethora of muni exposure across various industries, including student loan munis, general obligation bonds for financing local projects, and bonds supporting universities and colleges. Given this broad exposure, MFSM isn’t lacking in variety. This helps avoid concentration risk by avoiding only sector-specific bonds. The fund mostly sticks to investment-grade (rated BBB or higher) by credit rating agencies, mitigating credit risk.

Furthermore, it highlights the benefits offered by the fund’s actively managed strategy.

Active Benefits

As mentioned, active management offers benefits that passive/index funds don’t. One of the prime benefits is the flexibility they can offer. That flexibility is imperative in times like now, where market uncertainty abounds.

The MFS investment team has an average industry experience of 21 years. MFSM taps into this industry knowledge and expertise when selecting muni options for consideration as part of the fund’s holdings.

The fund’s portfolio managers can adjust the holdings as necessary to suit market conditions, whatever they may be at the time. Again, that flexibility is almost a necessity in today’s uncertainty. With MFSM, investors get that flexibility with just 34 basis points, or $34 per every $10,000 invested.

etftrends.com

By Ben Hernandez

November 5, 2025




Ballot Measures in the Upcoming 2025 General Election: Potential Impact on State Budgets - NASBO

Read the NASBO report.




Tricky Times Ahead for Governments’ Cash Managers.

Short-term interest rates are likely to continue ratcheting down, making it a challenge for state and local financiers to maximize income on investments. But there are a few opportunities here and there.

After resisting presidential pressure to cut interest rates until it became clear that the inflationary impact of tariffs would not be as severe as first expected, the Federal Reserve has begun what appears to be at least a short series of likely quarter-point reductions in its key federal funds rate.

Just how many of those cuts there will be and how deep they will go in early 2026 and beyond is still the big question in the money markets. Except for a few government treasurers and their external cash managers who’ve already locked up higher-yielding investments maturing late next year and into 2027, budget officers are now questioning whether their 2026 interest income projections will hold up.

Welcome to the next “new normal.” Shorter-term rates are declining, but not so much for longer maturities. Although many keep expecting this trend toward easier money to quickly result in lower mortgage interest rates to help the housing market, that’s not so obviously in the cards for now. The same is true for municipal bond issuers: Longer-term muni yields have held pretty steady despite Washington’s spin about stable inflation and benign tariff impacts. Wary bond investors still expect a healthy premium for the risks of future inflation and ballooning federal deficits.

Continue reading.

governing.com

OPINION | October 28, 2025 • Girard Miller




Strengthening Communities Through Smarter Asset Management.

Local governments are facing a unique set of challenges to maintaining critical infrastructure: aging facility portfolios and deferred maintenance backlogs, compounded with rising energy costs and uncertain funding. From city halls and libraries to water treatment plants and public safety buildings, leaders are being asked to do more with less while maintaining efficient and reliable public services.

To meet these challenges, municipalities must shift from reactive infrastructure maintenance to proactive, strategic capital asset planning. This transition isn’t just about fixing what’s broken—it’s about building resilience, optimizing budgets and aligning infrastructure investments with long-term community goals.

The cost of inaction on capital asset planning

Modern capital assets form the backbone of reliable local service delivery. Yet, deferred maintenance and reactive budgeting have left many communities vulnerable. According to the Government Finance Officers Association (GFOA), “deferring essential maintenance or asset replacement could reduce the organization’s ability to provide services and threaten public health, safety and overall quality of life”.

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smartcitiesdive.com

Published Oct. 27, 2025




Drought Is Quietly Pushing American Cities Toward A Fiscal Cliff.

Drought isn’t the only climate-driven disaster hitting cities. But it may be the most insidious of the natural threats straining local budgets.

The city of Clyde sits about two hours west of Fort Worth on the plains of north Texas. It gets its water from a lake by the same name a few miles away. Starting in 2022, scorching weather caused its levels to drop further and further. Within a year, officials had declared a water conservation emergency and, on August 1 of last year, they raised the warning level again. That meant residents rationing their spigot use even more tightly, especially lawn irrigation. The restrictions weren’t, however, the worst news that day: The city also missed two debt payments.

Municipal bond defaults of any kind are extraordinarily rare, let alone those linked to a changing climate. But, with about 4,000 residents and an annual budget of under $10 million, Clyde has never had room to absorb surprises. So when poor financial planning collided with the prolonged dry spell, the city found itself stretched beyond its limits.

The drought meant that Clyde sold millions of gallons less water, even as it imported more of it from neighboring Abilene, at about $1,200 per day. Worse, as the ground dried, it cracked, destroying a sewer main and bursting another, quarter-million dollar, hole in the town budget. Within days of Clyde missing its payments, rating agency Standard & Poor’s slashed the city’s bond ratings, which limited its ability to borrow more money. Within weeks, officials had hiked taxes and water rates to help staunch the financial bleeding.

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civilbeat.org

By Grist / October 28, 2025




US Municipal Bonds Face Rising Climate Risk Headwinds.

Several new municipal bonds are flagged for high flood and hurricane risk, raising questions about the climate resilience of local projects.

What’s going on here?

A string of newly issued US municipal bonds—including billions from states like Florida, Texas, and Iowa—are hitting headlines for their steep exposure to flooding and hurricanes, based on ICE Climate Data scores.

What does this mean?

ICE Climate Data’s rating system has flagged a fresh batch of municipal bonds for major climate vulnerability, with risk scores between 0.0 and 5.0. Polk, Iowa’s $6 million bond scored a worrying 4.8 for flood risk, Wheeling, West Virginia’s $61 million bond earned a 4.6, and Galveston County MUD No. 68 in Texas hit 3.8 for hurricane risk. Meanwhile, Lee County School District in Florida’s $393 million bond landed among the most at-risk, with a composite climate risk score of 4.8. Charleston County, South Carolina’s $196 million bond also received a high mark at 3.7. According to ICE, any score above 3.0 suggests elevated threat—whether from hurricanes, floods, or wildfires—prompting a closer look at how prepared local infrastructure is for climate impacts.

Why should I care?

For markets: Climate risk is changing municipal math.

Climate risk is starting to play a bigger role in municipal bond pricing, with investors keeping a keener eye on environmental vulnerabilities. This shift could push borrowing costs higher for regions slapped with top risk scores, making it harder for certain local governments to raise funds. Demand for climate transparency in bond disclosures means analysts and big investors are laser-focused on issues like those from Polk, Iowa and Lee County, Florida.

The bigger picture: Stronger infrastructure makes for stronger communities.

This is part of a bigger movement: climate adaptation is now a key factor in a city or county’s financial future. As extreme weather becomes more common, communities slow to manage these risks may face rising insurance payouts and bigger borrowing hurdles. That’s likely to shape everything from new school projects to how cities prep for emergencies for years to come.

finimize.com

Nov 3, 2025




S&P U.S. Highway User Tax Bond Report Card: Favorable Gas Tax Trends Provide Stability Despite Longer-Term Funding Shifts

Key Takeaways

Overview

S&P Global Ratings maintains ratings on a variety of U.S. highway user tax bonds, which are secured by transportation-related taxes and fees such as motor fuel taxes and motor vehicle registration fees. Most of these bonds are highly rated, reflecting generally high debt service coverage (DSC) and stable pledged revenue.

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27-Oct-2025 | 16:46 EDT




S&P U.S. Transportation Infrastructure Airport Update: Favorable Business Positions And Prudent Management Actions Are Key Amid Slowing Economy And Rising Costs

Key Takeaways

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28-Oct-2025 | 15:25 EDT




S&P U.S. Housing Finance Agencies 2024 Medians: Credit Stability And Balance-Sheet Growth Continue Amid Record Levels Of Capital Deployment

Key Takeaways

In a year in which economic sentiment broadly improved, coalescing around a cautious expectation for a soft landing, rated HFAs performed extremely well in 2024, deploying record amounts of capital in pursuit of their respective missions. Balance sheets continued the multiyear trend of growth amid record levels of bond-financed loan production, and demand for HFA products and services showed no sign of waning despite interest rates remaining at their highest levels in a generation. Strong market returns and favorable interest margins bolstered HFA net incomes and strengthened investment portfolios. Consequently, equity positions strengthened from prior-year historical highs, on average–albeit at comparatively slower rates than many agencies’ total asset balances.

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29-Oct-2025 | 09:41 EDT




S&P U.S. Not-For-Profit Transportation Infrastructure 2024 Medians: Demand And Revenue Growth Support Stable Metrics Amid Rising Costs

Key Takeaways

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30-Oct-2025 | 09:54 EDT




S&P U.S. Public Finance Housing Rating Actions, Third-Quarter 2025

View the S&P Rating Actions.

30-Oct-2025 | 15:46 EDT




Mayors Across U.S. Cities Name Housing Their No. 1 Challenge.

More than half of surveyed mayors expect affordability to worsen next year, but their powers are constrained by state pre-emption, high construction costs and limited municipal authority.

In U.S. cities big and small, mayors are finding their tenures shaped by housing shortages, and efforts to build more homes, so that people of any income can afford a place to live.

In a series of conversations, mayors of big cities such as Atlanta and Seattle, as well as of midsize Midwest cities like Columbus, Ohio, and Madison, Wisconsin, told Stateline that housing is the No. 1 priority for mayors to tackle.

“Housing is by far one of the most important issues facing every mayor in America. It impacts everything from safety to the workforce to transit,” said Columbus Mayor Andrew Ginther, who also is the immediate past president of the U.S. Conference of Mayors. “Mayors are on the front lines of our nation’s housing crisis. And it is a crisis.”

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governing.com

Oct. 27, 2025 • Robbie Sequeira, Stateline




Cities Across the U.S. Are Putting Robots to Work.

Robots are starting to do jobs like firefighting, lawn mowing and beach cleaning, among other things

Robots are coming to a town near you—deployed by cities to do work that is labor-intensive, repetitive or dangerous for humans.

Cities have long lagged behind the private sector when it comes to giving jobs to robots. That’s because robots are expensive and work best in highly controlled environments, not exactly the definition of city streets. Questions about safety, cybersecurity and job displacement also loom large in public settings. Police robots, for example, have occasionally stirred up fears about surveillance and the potential for lethal force.

So for now, the robots being rolled out in cities are friendly and low-profile—they mow lawns, clean beaches and guide people through buildings, among other things. And they still have to prove their worth, experts say.

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The Wall Street Journal

By Jackie Snow

Oct. 30, 2025




Municipal Bonds May Be on the Mend.

Many fixed income investors are enthusiastic about the bond market’s prospects against the backdrop of Federal Reserve easing.

Bonds issued by cities and states, and ETFs such as the ALPS Intermediate Municipal Bond ETF (MNBD B-), have been hamstrung by a variety of factors. These include massive issuance but waning demand, narrowing credit spreads and lagging performances relative to Treasuries of comparable durations. Combine those factors and it might appear as though MNBD is dealing with headwinds.

Some bond market observers believe the darkest clouds for municipal debt have past. That opportunity beckons with these bonds and ETFs like MNBD. Some encouraging clues are found by way of the 30-year muni/Treasury ratio.

“The M/T ratio historically hovers near 80% to [90%. Anything over 100% suggests] that munis are a very good deal as they’re yielding more than a comparable US Treasury,” noted Morningstar analyst Elizabeth Foos. “The M/T ratio on the 30-year part of the curve pushed toward the higher end of its historical range, closer to 90%–95%, going into the back half of the [year. That indicates] a good value for muni investors willing to take on some additional interest rate risk.”

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etfdb.com

by Todd Shriber

Oct 29, 2025




Muni Bonds Are Looking Better.

After a slow start to 2025, long municipal bonds are rebounding.

Despite offering historically attractive aftertax yields, municipal bonds were one of the worst-performing sectors in the fixed-income market through the first nine months of 2025.

It’s been a risk-off year for munis: While the median total return for a strategy in the intermediate core bond and high-yield bond Morningstar Categories was 6.0% and 6.7%, respectively, through September 2025, the same measure for the muni-national long and the high-yield muni categories reflected modest gains of 1.7% and 1.3%. Those gains for munis came mostly in September, after recording losses through August 2025.

Significant amounts of new municipal-bond issuance (on pace for the largest annual total since 2017), lukewarm investor demand, and underperformance versus Treasuries all pressured prices. Additionally, narrowing credit spreads in the already crowded high-yield muni sector as we entered the year, and some deterioration in credit quality for a few larger issuers left less upside as investors ventured lower down the credit spectrum.

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morningstar.com

by Elizabeth Foos

Oct 28, 2025




This Will Be Another Record Year for Munis Says BAM Mutual CEO, Co-Founder.

Sean McCarthy, CEO, BAM Mutual joins Bloomberg Intelligence on site from BAM Mutual in Lower Manhattan to discuss this years record breaking municipal bond run and the outlook for munis going forward.

Watch video.

Bloomberg Markets

October 28th, 2025, 8:30 AM PDT




Muni Market Rebounds as Technical Pressures Ease, States Face Fiscal Strains: Rinehart

Muni bonds have recovered from a rough start to 2025 but still underperforms other parts of the fixed income market. Columbia Threadneedle’s Shannon Rinehart warns that federal funding cuts, especially the Medicaid, will pressure state budgets, citing California as a standout example of strong revenues but rising spending risks. She discusses the outlook for the muni market on “Bloomberg Markets” with Scarlet Fu.

Watch video.

Bloomberg Markets – Muni MomentTV Shows

October 30th, 2025, 11:27 AM PDT




The States’ Perilous Addiction to Money From Washington.

Federal funding is a bigger share of state budgets than ever. It comes with too many strings and strictures that choke off efficiency and innovation, and it threatens democratic self-governance.

In 1998, Louisiana’s legislature added a sovereignty clause to the state’s constitution that promises its citizens “the sole and exclusive right of governing themselves as a free and sovereign state.” The constitutions of New Hampshire and Montana, among others, have long contained the same phrasing. Mississippi’s constitution similarly asserts that “the people of this state have the inherent, sole, and exclusive right to regulate the internal government and police thereof.” Rhode Island’s constitution boasts a localist variant, confirming “to the people of every city and town in this state the right of self-government in all local matters.”

Such claims of autonomy notwithstanding, each of these states depends on federal agencies for over 40 percent of its annual revenue. Louisiana, so freshly drawn to the sovereignty clause, leads the pack at a whopping 52 percent dependency on federal funds. According to the latest Census Bureau data, Louisiana, along with 22 other states, is more reliant on federal dollars now than during the height of COVID-19 lockdowns.

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governing.com

OPINION | October 24, 2025 • Tony Woodlief




S&P Sustainability Insights: The Credit Materiality Of Physical Climate Risks Is Uneven Across Asset Classes

Key Takeaways

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Free Registration Required.

23-Oct-2025 | 14:03 EDT




Fitch: Not-for-Profit Hospital Liquidity Strength Limits Market Bubble Risk

Fitch Ratings-Chicago/Austin/New York-23 October 2025: A sharp equity market correction would cause a drop in liquidity for Fitch-rated U.S. not-for-profit (NFP) hospitals as investment income comprises a growing share of hospitals’ liquidity positions and revenue, Fitch Ratings says. Nevertheless, we believe credit effects would be limited, as hospitals in our rated portfolio maintain substantial unrestricted liquidity despite significant operating pressures over the past few years.

To evaluate this risk, Fitch assesses a hospital’s financial resilience to economic/market cycles using its Portfolio Analysis Model (PAM). The model applies stresses tailored to the size and allocation of a hospital’s investment portfolio to estimate stressed portfolio value changes over five years. A decline in value primarily reduces liquidity and increases leverage metrics.

Based on the PAM result, Fitch evaluates available liquid resources, operating cash flow capacity to bridge a market downturn, and the ability to adjust capital spending. Ratings should generally be able to withstand the PAM stress case, which reflects normal cyclical changes in valuations. Ratings can become pressured if actual declines are materially worse or more prolonged than the stress case, or if PAM-level declines coincide with already thin liquidity, softer operating cash flow and/or outsized capital programs.

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Fitch U.S. Public Finance: 2025 Rating Actions to 24 October

This is the U.S. Public Finance Rating Action Report 2025 Year to Date (1 January to 24 October).

Access Report

Sun 26 Oct, 2025 – 11:25 PM ET




U.S. Public Finance Default and Distress Analysis: Fitch Special Report

Distress and default rates in Fitch Ratings’ U.S. Public Finance (USPF) portfolio have been consistently lower than other rated sectors over the past two decades. The cumulative distress rate of 1% over the past two decades was the lowest among major market sectors rated by Fitch.

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Mon 20 Oct, 2025 – 5:47 PM ET




S&P U.S. Mortgage Revenue Bond Program Medians: Credit Stability Reinforced By Strong Management During Program Expansion

Key Takeaways

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Free Registration Required.

23-Oct-2025 | 11:20 EDT




Report Ranks Every State’s Debt, from California’s $497 billion to South Dakota’s $2 billion.

Study finds state governments have a total of $2.7 trillion in debt, with 26 states exceeding $20 billion in debt each and 10 states over $70 billion.

State governments had $2.7 trillion in debt at the end of 2023, a new Reason Foundation analysis finds. This state debt is equivalent to approximately $8,000 per person nationally.

With $497 billion in liabilities, California had the largest state government debt as of the end of the 2023 fiscal year, the most recent year for which complete data are available.

Four other state governments had more than $200 billion in state debt: New York ($233 billion), Illinois ($223 billion), Texas ($217 billion), and New Jersey ($213 billion). Massachusetts had $120 billion in state liabilities, followed by Connecticut, Washington, Pennsylvania and Florida.

Meanwhile, 10 states—South Dakota, Idaho, Nebraska, Montana, New Hampshire, Utah, Vermont, Rhode Island, Wyoming, and Maine—each had less than $10 billion in debt at the end of 2023, according to Reason Foundation’s State and Local Government Finance Report.

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reason.org

Mariana Trujillo
Managing Director

Jordan Campbell
Managing Director

October 23, 2025




Procurement AI Tech Provider Starbridge Raises $42M.

The company gathers procurement data and signals from agencies and turns them into action for sellers of public-sector technology. The investment is just the latest bet on AI for local and state government.

Starbridge, a relative newcomer to government technology that uses AI for procurement, has raised $42 million.

Craft Ventures led the Series A funding round, which follows $10 million in seed funding earlier this year.

The investment reflects yet another bet, amid speculation of a market bubble, that artificial intelligence will boost public-sector operations while providing profitable returns.

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govtech.com

October 24, 2025 • News Staff




Payment Tech Firm Government Window Wins PE Backing.

The Georgia-based firm, looking to expand, has won a “strategic investment” from Riata Capital Group. The move comes as more public agencies beef up their payment offerings for taxes, permitting and other transactions.

Government Window, a Georgia-based company that sells payments software to local and state government, has received a “strategic investment” from Riata Capital Group, a Dallas-based private equity firm.

Terms were not disclosed.

The investment will go toward geographic expansion for Government Window, along with what a statement calls “the continued buildout of its leading payments software platform.”

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govtech.com

October 20, 2025 • News Staff




TD Securities Unifies Municipal Business to Boost Efficiency.

TD Securities (TDS) has announced the integration of its Public Finance business, previously operating out of TD Securities (USA) LLC, into TD Financial Products.

“With all municipal business consolidated into one entity, we can now present a unified offering to our customers across all aspects of the municipal market, including public finance, voice trading, algorithmic trading, and structured products,” said Matthew Schrager, Managing Director and Co-Head, Automated Trading, TDS.

“This integration will also enhance our capabilities within these areas through more seamless internal collaboration. For example, we can now apply the modeling that drives our algorithmic business to other aspects of the market, such as public finance or voice trading. For clients, this means stronger liquidity and an enhanced ability to meet their needs,” he told Traders Magazine.

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tradersmagazine.com

By Anna Lyudvig

October 23, 2025




Gravity Buying Cityspan To Build A Fully Integrated Fintech Platform for Governments.

Gravity, a leading disclosure and budgeting automation company for the public sector, has announced the acquisition of Cityspan, a provider of cloud-based grants management and performance measurement systems. The deal marks a major expansion in Gravity’s mission to deliver an end-to-end financial management solution for governments, connecting budgeting, reporting, grants, and citizen engagement through a single unified platform.

Based in Tampa, Florida, Gravity has rapidly emerged as one of North America’s fastest-growing technology providers in public finance. The acquisition of Cityspan adds robust grants lifecycle management tools to Gravity’s product portfolio, strengthening its ability to serve federal, state, and local governments.

Cityspan’s technology is widely used by major public agencies and supports the entire grants process, including applications, contracting, performance tracking, and outcome reporting. Its architecture will be fully integrated into the Gravity platform by mid-2026, complementing the company’s growing suite of financial management tools that includes disclosure, budgeting, lease management, and debt management solutions.

For governments, the integration of Cityspan’s capabilities into Gravity’s technology stack means the ability to manage every part of the financial lifecycle through one comprehensive system. This unified experience enhances compliance, audit readiness, and transparency while freeing staff from repetitive administrative tasks. The combined offering will help public agencies connect financial decisions directly to outcomes, creating a clearer link between taxpayer resources and community impact.

Cityspan’s grants and performance management tools will now operate alongside Gravity’s recently launched AI-powered Disclosure Studio and Engagement Studio platforms. These next-generation products are designed to streamline complex financial processes, simplify public disclosures, and foster better communication between governments and citizens. Together, they advance Gravity’s goal of transforming how governments handle financial data—moving from disconnected systems to an intelligent, integrated platform.

The acquisition also builds on Gravity’s growing momentum in the civic technology space following its recent purchase of coUrbanize, a leading community engagement platform. With Cityspan’s expertise and data-driven performance tools, Gravity is now positioned to lead a new era in government financial management, combining transparency, accountability, and operational efficiency.

KEY QUOTES:

“This acquisition represents a major step forward in our mission to provide governments with a comprehensive, connected financial management platform. Cityspan brings proven grants management technology that serves some of the nation’s largest public agencies. By integrating their capabilities into our platform, we’re enabling governments to manage the entire financial lifecycle – from grants and budgets to disclosures and community engagement – all in one place. We’re excited to welcome the Cityspan team to Gravity and to continue investing in their success.”

Tyler Davey, Chief Executive Officer, Gravity

“Data-driven transparency is transforming the way governments serve their communities. Integrating Cityspan’s trusted grants and performance management technology with Gravity’s innovative platform extends our shared commitment to open, accountable government. Together, we’re empowering public agencies to turn data into impact, ensuring every program, budget, and report reflects the real needs of the communities they serve.”

Mark Min, Chief Executive Officer, Cityspan




Credit FAQ: How S&P Global Ratings Assigns The Loss Coverage Score For U.S. Long-Term Municipal Pools

S&P Global Ratings occasionally receives questions from market participants regarding how it assesses the loss coverage capability of U.S. long-term municipal pools such as state revolving funds, bond banks, and permanent school funds. Our approach to assigning a loss coverage score (LCS) is specified in the “U.S. Public Finance Long-Term Municipal Pools: Methodology And Assumptions,” July 26, 2024, (see framework graphic). Here, we address some of the most frequently asked questions.

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[Free registration required.]

14-Oct-2025 | 15:41 EDT




Wharton: Why ESG Scores Are Moving the $4 Trillion Municipal Bond Market

Key Takeaways

Investors in the $4 trillion U.S. municipal bond market are paying more for bonds with credible environmental, social, and governance information, even when those bonds are not officially labeled as “green” or “social.”

That is the key finding of a new study into the green bonds market, co-authored by Wharton finance professor Daniel Garrett, Penn PhD student Mahdi Shahrabi, and Oregon State University professor Brian Gibbons. It shows that municipal bonds with third-party ESG scores trade at higher prices, signaling cheaper borrowing costs for issuers. On average, yields — which move inversely to prices — dropped by 3 to 4 basis points when a bond received an ESG score, even if it had no formal label.

An ESG score is a third-party assessment of a bond’s environmental, social, or governance features. A label, by contrast, is a formal designation — like “green bond” — from the issuer that requires meeting strict international criteria.

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Wharton

October 14, 2025




Municipal Bankruptcy: Avoiding and Using Chapter 9 in Times of Fiscal Stress - Orrick

This report is dedicated to the memory of John Knox, Co-author of the first edition and a wonderful person, partner and public finance attorney.

What should leaders of local governments know about municipal bankruptcy? The 3rd edition of this report offers a practical overview of both avoiding municipal bankruptcy and navigating through a chapter 9 case should a filing be necessary. The report emphasizes that underlying financial problems – whether structural operating deficits or catastrophic losses – must be resolved regardless of bankruptcy filing status, and that while chapter 9 can greatly benefit a local government, it also comes with significant costs and long-term consequences.

Drawing on real-world municipal bankruptcy cases including Detroit, Stockton, Jefferson County, Vallejo and San Bernardino, the report provides actionable frameworks for financial crisis assessment, bankruptcy preparation procedures, and post-bankruptcy recovery strategies.

Read the full report.

The Orrick Public Finance Green Book Series

October.14.2025




Bloomberg Video: Cyber Attack Ensnares $4.3T Muni Market’s Key Site.

Concerns over cyber risks is growing in the municipal market as MuniOS got a ransomware attack that disrupted state and local borrowers’ ability to post debt documents on this platform for several days, until it went back online Thursday morning. Bloomberg’s reporter Erin Hudson discussed the story on “Bloomberg Markets” with Scarlet Fu.

Watch video.

Bloomberg Markets – Muni Moment

October 17th, 2025, 10:57 AM PDT




Cyber Attack Ensnares $4.3 Trillion Muni Market’s Key Site.

Takeaways by Bloomberg AI

A ransomware attack is disrupting state and local borrowers’ ability to post debt documents on the $4.3 trillion municipal-bond market’s main distribution platform.

MuniOS, a website operated by Ann Arbor, Michigan-based tech company ImageMaster LLC, has been out of service for several days due to the cyber attack, according to people familiar with the matter who asked not to be named discussing the private matter.

Borrowers use the website to showcase their bond offering documents, and it’s a popular service used by investors and analysts for information about transactions before they are sold. While market participants said they hadn’t seen or experienced any delays in deals, some issuers are shifting long-held practices by turning to alternative platforms such as BondLink due to the disruption.

Representatives for ImageMaster did not respond to requests for comment.

The municipal bond market is where US states, cities, transportation systems, airports, colleges and other borrowers raise debt to finance infrastructure projects. Local governments often post their offering documents publicly on websites like MuniOS to accessibly market the deals to both institutional and retail buyers.

Inconvenient Outage

The MuniOS outage is causing issuers, investors, bankers and lawyers headaches and inconvenience, but so far transactions have proceeded normally, according to multiple market participants who spoke on the condition of anonymity. The disruption has prompted some to directly send large-file PDFs between parties the old-fashioned way, while others have seen their days fill up with long phone calls from investors unable to access documents, they say.

The documents for a $1.8 billion sale by the Texas Transportation Commission were posted to a different platform called McElwee & Quinn LLC, a financial printing services company, according to a spokesperson for the Texas Department of Transportation. Additionally, the agency provided physical copies of the document to address investor inquiries. The sale is proceeding as planned, the spokesperson said.

In ransomware attacks, hackers will lock up computer systems — sometimes stealing sensitive data — and hold them hostage in return for payment. Cybercriminals have pulled off several high-profile attacks in recent months, with corporations from the beverage maker Asahi Group Holdings Ltd. to the carmaker Jaguar Land Rover Automotive Plc being hit.

Concerns over cyber risks have been growing in the municipal market as well, with credit rating analysts raising it as a concern. In one high-profile situation last year, a Detroit suburb’s bond sale was hacked and the proceeds were stolen.

The MuniOS website was launched in 1999 and is used by issuers to distribute and print their bond offering documents. Bloomberg reported in 2017 that the service had a market share of over 70%.

The Municipal Securities Rulemaking Board, the market’s self-regulatory organization, sent out a notice on Tuesday that issuers can use its EMMA website to post preliminary official statements and other market information.

The notice did not mention the outage at MuniOS.com.

Bloomberg Technology

Erin Hudson and Amanda Albright

October 15, 2025

— With assistance from Elizabeth Rembert and Lynn Doan




Barclays Sees Muni ‘Space Bonds’ Becoming $25 Billion Market.

Takeaways by Bloomberg AI

Barclays Plc says the municipal-bond market is poised for new debt sales for space facilities after the enactment of the Trump administration’s One Big Beautiful Bill Act.

The legislation included a provision that would let spaceports sell tax-exempt bonds, known as private-activity bonds, similar to airports. In a report late last week, Barclays strategists led by Mikhail Foux said that there is no limit to issuance of spaceport bonds, unlike other types of private-activity bonds.

“This could become a relatively active municipal sub-sector, in our view,” they wrote. “Several bond issues might be coming to the market in the not-so-distant future.”

A spaceport is any facility located near a launch site or a reentry site. Eligible projects may be those that are used to operate flights, load cargo to or from the spacecraft, or manufacture and repair spacecraft, for example.

Barclays predicts that outstanding debt for spaceport bonds could grow to between $20 billion and $25 billion by 2034, based on estimates from the Joint Committee on Taxation.

The new financing tool “offers numerous benefits for private entities and corporations, as well as space agencies involved in space exploration and related activities,” wrote Edwin Oswald and Kevin Roche, partners at Orrick, Herrington & Sutcliffe LLP, in an August report.

In Florida, the state’s aerospace finance authority has identified $2.9 billion of infrastructure needs for the Kennedy Space Center and Cape Canaveral Space Force Station.

Space authorities in Oklahoma, Texas, New Mexico and California are potential future issuers of the debt, the Barclays strategists wrote in the report.

Bloomberg Markets

By Aashna Shah

October 20, 2025




Municipal Bonds in Congressional Districts: University of Chicago

Tax-exempt municipal bonds are the primary financing tool that state and local governments use to build roads, schools, water supply systems, public and non-profit hospitals and other public infrastructure. Today there are more than $3.5 trillion in active municipal bonds from more than 50,000 individual governments.

The goal of this research is to understand how tax-exempt municipal bonds impact communities. Using a first-of-its-kind dataset, we identify the types of state and local governments that use municipal bonds, and the types of infrastructure investments financed by those bonds, across US Congressional districts. This analysis allows us to explore previously-unknown patterns of municipal bond borrowing and investments both within and across regions. This analysis is based on data from ICE municipal bond reference and geospatial data.

Use the drop-down menu below to find a PDF-formatted report for each state and every Congressional district. Please contact Justin Marlowe (jmarlowe@uchicago.edu), Director of the Center for Municipal Finance, with questions or other feedback on this project.

The University of Chicago




Fitch U.S. Public Finance Default and Distress Analysis.

Distress and default rates in Fitch Ratings’ U.S. Public Finance (USPF) portfolio have been consistently lower than other rated sectors over the past two decades. The cumulative distress rate of 1% over the past two decades was the lowest among major market sectors rated by Fitch.

Access Report

Mon 20 Oct, 2025 – 5:47 PM ET




Fitch U.S. Public Finance: 2025 Rating Actions to 17 October

This is the U.S. Public Finance Rating Action Report 2025 Year to Date (1 January to 17 October).

Access Report

Mon 20 Oct, 2025 – 10:36 AM ET




Fitch Ratings Publishes Global Government-Related Entities Data Comparator.

Fitch Ratings-Shanghai/New York-14 October 2025: Fitch Ratings has published the second edition of its 2025 Global Government-Related Entities (GREs) Data Comparator. This interactive Excel file lists 460 Fitch-rated public GREs across Corporates and Public Finance and allows users to filter by key rating drivers across the cohort.

Fitch defines GREs as entities with a significant relationship to a government, often reflected through ownership, control, or support. These entities typically perform public policy functions, benefit from government backing, or hold strategic importance to the government. This report details not only the final ratings for all Fitch-rated GREs, but also allows users to filter and compare entities based on their Standalone Credit Profiles, rating anchors, notches from the anchor — top-down (negative values), bottom-up (positive values), or equalized with the parent (zero) — and the key risk factors Fitch uses to assign an overall support score.

The matrix of assessment scores used by Fitch to assign a support score, following an assessment of a parent’s responsibility and incentive to support, together with the notching guideline are also included at the end of the report for reference. Fitch’s support point system and notching guideline are outlined in the report for reference. All data is as of the end of the third quarter (Sept. 30, 2025).

The GRE Comparator can be viewed at www.fitchratings.com.




S&P: U.S. CDFIs Still Steady Amid Funding And Economic Uncertainty

Key Takeaways

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16-Oct-2025 | 09:28 EDT




S&P U.S. Higher Education Rating Actions, Third-Quarter 2025

View the S&P Rating Actions.

15-Oct-2025 | 15:50 EDT




S&P U.S. Not-For-Profit Health Care Outstanding Ratings And Outlooks As Of Sept. 30, 2025.

View the S&P Ratings and Outlooks.

17-Oct-2025 | 16:02 EDT




S&P U.S. Charter Schools Rating Actions, Third-Quarter 2025

View the Rating Actions.

14-Oct-2025 | 17:38 EDT




Fitch Ratings Publishes Exposure Draft of Affordable Housing Project Rating Criteria.

Fitch Ratings-New York/Chicago/San Francisco-15 October 2025: Fitch Ratings has published an exposure draft detailing proposed revisions to its rating criteria for Affordable Housing Projects (AHPs).

“The proposed revisions will broaden the scope of the criteria to include additional property segments, subsectors and additional forms of underlying collateral in response to recent trends and market developments,” said Fitch Senior Director Karen Fitzgerald.

The updated criteria will consolidate the existing “U.S. Affordable Housing Rating Criteria” (published March 2022) and “U.S. Military Housing Rating Criteria” (published June 2022) into a combined, sector-specific criteria report, which will cover affordable, mixed-income, military, workforce, senior, student and other types of affordable housing.

Highlights of the proposed AHP criteria include:

–Expansion of the scope of the criteria to encompass additional property segments (e.g., mixed-income housing), subsectors (e.g., federally enhanced multifamily mortgage loans) and additional forms of underlying collateral (e.g., residual cash flows and discrete income streams), and to add new analytical guidance related to the expanded scope.

–Enhancement of the current guidance for assessing various risks and attributes that are common across sectors (e.g., refinance risk) by incorporating existing analytical frameworks or by referencing other relevant Fitch criteria that can be used to analyze these features.

–Expansion of the existing guidance for assessing the risks and attributes of AHP transactions.

–Consolidation of the key rating driver (KRD) tables for affordable housing and military housing projects, providing ‘aa’ through ‘b’ attribute guidance for all KRDs across housing types.

“These revisions reflect Fitch’s ongoing commitment to analytical rigor, transparency, and market relevance in the affordable housing and military housing sectors.” Fitzgerald added.

Fitch anticipates proposed criteria updates will have no rating impact on current ratings. In addition to the exposure draft, Fitch has also published an Exposure Draft Frequently Asked Questions (FAQs) on the proposed Affordable Housing Project Rating Criteria.

Fitch is actively soliciting market feedback on the proposed criteria. Send comments to criteria.feedback@fitchratings.com by Nov. 21, 2025. Fitch’s “Exposure Draft: Affordable Housing Project Rating Criteria” and the FAQs are available at www.fitchratings.com or by clicking the links above.




S&P U.S. Transportation Infrastructure Transit Update: Operators And Stakeholders Confront "What's Fare?"

Key Takeaways

Continue reading.

13-Oct-2025 | 14:36 EDT




U.S. Mass Transit Ratings And Outlooks: Current List And Recent Rating Actions

Read the ratings and outlooks.

13-Oct-2025 | 14:38 EDT




As Stadium Boom Resumes, ‘Private Funding’ Often Comes With Public Strings.

Cities eager to tout privately financed sports stadiums are still spending big through tax breaks, land deals and public financing that shift costs back to taxpayers.

When the deep-pocketed Denver Broncos ownership group announced its plans for a new football stadium in September, city and state leaders applauded its pledge to privately finance both the stadium and a new mixed-use district surrounding it.

But the Broncos’ announcement contained some notable fine print. The multibillion-dollar stadium complex won’t be entirely funded by the team’s owners, which include members of Walmart’s Walton family.

“The project will include city and state support for public improvements,” the announcement noted.

Continue reading.

smartcitiesdive.com

By Vicky Uhland

Published Oct. 20, 2025




Nuveen’s Junk Muni Fund Slashes 99% of Its Chicago Schools Debt.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Shruti Singh

October 17, 2025




States and Localities Count Dollars, Eye Options as Shutdown Continues.

State and local governments are considering how they can help federal workers and how long they can afford to continue social safety net programs and infrastructure projects.

In Brief:

As the federal shutdown hits 10 days, state and local governments are looking for ways to support their federal workers who are going without pay. They’re also counting their dollars to see how long they can maintain safety net programs.

Lawmakers in Congress could reach an agreement before consequences become too severe. But the Trump administration and Congress have shown a willingness to endure shutdowns. The last federal shutdown took place under President Donald Trump’s first term and broke records when it lasted 35 days. Trump’s first term saw three shutdowns.

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governing.com

October 10, 2025 • Jule Pattison-Gordon




‘This Shutdown Feels Different.’ States Might Not Get Repaid When Government Reopens.

Going without federal reimbursement for shutdown costs could force states to cut their own budget priorities.

States are doing what they generally do during a federal government shutdown: continuing to operate programs serving some of the neediest people.

That means schools are still serving federally subsidized meals and states are distributing funding for the federal food stamp program. For now.

If the shutdown drags on and federal dollars run out, states can only keep programs going for so long. States may choose to pay for some services themselves so residents keep their benefits.

But this time, state leaders have new worries about getting reimbursed for federal costs once the federal spending impasse is resolved. That’s traditionally been the practice following a shutdown, but the Trump administration’s record of pulling funding and targeting Democratic-led states has some officials worried about what comes after the shutdown.

Continue reading.

stateline.org

By: Kevin Hardy

October 9, 2025




Fitch: CDFI Equity Strong, Losses Low Amid Funding Shifts

Fitch Ratings-Chicago/San Francisco/New York-09 October 2025: Fitch Ratings has published its third annual Community Development Financial Institution (CDFI) Peer Credit Analysis, covering five years of audited data for 40 CDFI loan funds over fiscal 2020-2024. The report finds resilient credit profiles, with low delinquencies and losses, stable profitability and rising equity supporting financial strength.

As interest rates remain elevated and potential cutbacks and lags impact federal funding, Fitch expects shifts in funding mix and higher cost of funds. Fitch believes sector fundamentals and prudent risk management will continue to anchor credit strength.

CDFI balance sheets expanded over the past five years, with loans and equity rising faster than debt, keeping leverage in check. Equity growth has outpaced debt for many peers, lowering debt-to-equity ratios and supporting capital flexibility. Demand for affordable housing and community development loans remains strong amid tighter bank lending standards and weak affordability. Equity cushions will help support new funding sources, which are likely to lift costs of funds.

CDFI asset quality compares favorably with banks. Non-performing loans remain modest and net charge-offs low, reflecting active servicing, early interventions and loss mitigation. A prolonged federal funding disruption could delay or constrain certain grant disbursements or program approvals, pressuring near-term liquidity and timing of originations for some CDFIs. However, Karen Fitzgerald, Fitch Senior Director, U.S. Public Finance, notes that, “Sector liquidity, equity-to-assets ratios well above banks and conservative balance sheet management provide cushions against temporary funding volatility.”

Fitch’s latest CDFI Peer Credit Analysis is available at www.fitchratings.com.




S&P U.S. Transportation Infrastructure Transit Update: Operators And Stakeholders Confront "What's Fare?"

Key Takeaways

The U.S. mass transit sector outlook remains stable, underpinned by supportive dedicated tax revenue growth — often exceeding drops in fare revenue — combined with operators’ proactive adjustments to service levels and expenses that have helped restore fiscal balance in operating funds. This stabilizing credit trend is largely attributable to robust tax support and a historical trend of political support, demonstrated through both revenue growth and ongoing financial commitments from regional stakeholders. However, economic headwinds and the potential of waning political support could pressure ratings in the near term. For more information on S&P Global Ratings’ U.S. economic outlook, see “Economic Outlook U.S. Q4 2025: Below-Trend Growth Persists Amid A Swirl Of Policy Shifts,” Sept. 23, 2025.

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13-Oct-2025 | 14:36 EDT




What US Cities Can Learn From Vancouver’s Transit Recovery.

Also today: Mapping a way out of the US housing affordability crisis, and the political transformation of California’s billionaire mall king.

While transit agencies in cities from San Francisco to Philadelphia continue to struggle to match pre-Covid passenger counts, Vancouver’s regional TransLink system has become a success story: Ridership has recovered to around 90% of 2019 levels, at a rate faster than almost any other major transit system in North America.

TransLink’s CEO Kevin Quinn credits the success to several key strategies that make Canadians stand out from their US counterparts, including prioritizing frequent service and implementing land-use policies that promote dense development around transit stations. Population growth in nearby municipalities, fueled by immigration, also plays a role. In a conversation with contributor David Zipper, Quinn — a transplant from Maryland —reflects on the lessons Vancouver offers to other North American cities.

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Bloomberg CityLab

By Arvelisse Bonilla Ramos

October 9, 2025




Munis Are Very Resilient to Government Shutdowns, says Nuveen’s Dan Close.

Dan Close, Nuveen head of municipals, joins ‘The Exchange’ to discuss if municipal bonds can remain a safety play, if there are areas within municipals more attractive than others and much more.

Watch video.

cnbc.com

Fri, Oct 10 2025




The Municipal Bond “Moment” Persists - But Cracks Are Forming

The Moment is Still Here

Last week, we highlighted that municipal bonds were having a moment—and that remains true as we begin the first full week of October. Tax-exempt yields continue to hold near their mid-September levels, offering compelling relative value compared to the late-September lows. The Bloomberg Municipal Bond Index, a proxy for tax-exempt yields, closed at 3.64% on Friday, up 10 basis points from a recent low of 3.54% on Sept. 17, underscoring the attractive entry point currently available in the market at this “moment”.

Continue reading.

advisorhub.com

by Tom Kozlik, HilltopSecurities

October 6, 2025




BlackRock’s Haskell Expects Muni Performance to Accelerate.

The municipal-bond market just clocked its best month of returns since December 2023 — and one investing giant in the space says that momentum will continue through the end of 2025.

BlackRock Inc.’s Pat Haskell, who serves as head of municipals, said US state and local debt should do particularly well as this year’s record surge of supply begins to dry up in November and December.

This year’s heavy issuance has at times weighed on performance this year. Muni bonds have underperformed US Treasuries year-to-date, returning 2.9% while Treasuries have returned about 5.5%, according to Bloomberg indexes.

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Bloomberg Markets

By Erin Hudson

October 8, 2025




Fitch: Prolonged US Government Shutdown Could Strain Public Finance Credits

Fitch Ratings-New York/San Francisco-01 October 2025: A brief U.S. government shutdown is unlikely to affect most U.S. public finance (PF) credits, Fitch Ratings says. However, a prolonged shutdown could have negative credit ramifications for USPF issuers, especially those dependent on federal healthcare, housing, and higher education funding. Federal budgets directly support many functions carried out by states, local governments, and not-for-profit entities, and federal spending drives economic activity that underpins public finance credit quality.

Medicaid, which comprises roughly one-third of total state budgets, and Medicare are not funded through annual appropriations and therefore their funding is unaffected by a government shutdown. These programs account for over half of not-for-profit hospitals’ payor mix.

The Federal Highway Administration’s Highway Trust Fund (HTF), a dedicated funding source for federal highways and transit programs, is funded by gasoline and fuel taxes and is not subject to annual appropriations. HTF funds are expected to continue to flow to states to repay GARVEE bonds. GARVEE bonds also benefit from structural safeguards, and many issuers pre-pay debt service a year in advance.

Non-essential employees have been furloughed or required to work without pay, although the Government Employment Fair Treatment Act of 2019 requires deferred federal salaries be paid after a shutdown. It is unclear if certain federal employees will see permanent changes to their employment or pay status. If there are permanent staff reductions, localities with the highest proportion of federal employment are likely see lasting declines in tax revenues.

An extended federal government shutdown would exacerbate existing pressures on tax revenues and could create additional service demands in the District of Columbia (AA+/Stable). The federal continuing resolution passed in March 2025 allows advance appropriation of local funds for fiscal 2026 and 2027, enabling the District to continue operations during a shutdown.

The macroeconomic impact of a shutdown is limited in the near term. However, a protracted disruption, particularly if accompanied by significant funding withdrawals or workforce reductions, could slightly slow U.S. economic growth. Discretionary federal spending totalled $1.8 trillion in 2024, or about 6.0% of GDP, according to the Congressional Budget Office. A little more than half of this was non-defense discretionary spending. Fitch’s USPF ratings account for normal economic cycles, and states’ fiscal 2026 budgets anticipate slower economic growth.

Most state and local government ratings assume sufficient flexibility to address federal funding reductions, primarily through their own spending cuts. This reflects their significant autonomy within the U.S. federal structure. Local governments also bear the risk of absorbing state cutbacks after federal reductions, but they typically have broad budget tools and reserves to manage unforeseen developments.

Many states and local governments currently benefit from high reserves and solid liquidity, reflected in Fitch’s generally robust assessment for governments’ financial resilience and high credit ratings. But reserve and liquidity levels may decline, particularly for governments with lower financial resilience assessments, if governments are unable to quickly adjust to slower economic growth and shifts in federal spending priorities. Weaker sovereign public finances and federal spending cuts could diminish the reach and effectiveness of countercyclical actions, leaving USPF issuers vulnerable to a slowdown.

Revenue-supported entities are generally well-positioned to absorb the effects of reduced federal funding. However, an extended spending pause could negatively affect credits that rely on federal funding for certain programs, including those for housing, higher education, and public transit. Backfilling lost federal funds with own-source resources could affect operating performance over time.

The shutdown could also cause non-material operational disruptions at airports if non-essential Federal Aviation Administration and Transportation Security Administration workers are furloughed, although financial risk remains very low. Airport capital projects could be delayed if federal grant funding is held up.




Fitch Ratings Reviews Exposure Draft Feedback for U.S. Public Finance Charter School Rating Criteria

Fitch Ratings-New York/Chicago-01 October 2025: Fitch Ratings published an exposure draft for proposed revisions to its “U.S. Public Finance Charter School Rating Criteria” on Aug. 4, 2025. The comment period for feedback on the draft criteria ended on Sept. 30, 2025.

Fitch is reviewing feedback received on the draft criteria. The agency expects to address comments and publish the final criteria following the close of the comment period. Fitch will publish all written responses received by the end of the comment period, including the respondent’s name, unless the response was clearly marked as confidential.

The exposure draft outlines proposed changes to Fitch’s methodology for assigning Issuer Default Ratings (IDRs) and instrument ratings to U.S. charter schools. Charter schools offer K–12 education under authorized charters, providing curriculum choice and school-level operational flexibility while remaining accountable to performance and compliance standards. The criteria address demand and enrollment dynamics, financial resilience and liquidity, leverage and debt structure, governance effectiveness and charter renewal risk, and legal and security frameworks supporting operating continuity and bondholder protections.

 




Mission Creep: The Fed’s Foray Into State and Local Debt

The Fed’s scheme to offer credit to states and municipalities was fiscal policy in disguise, turning local mismanagement into a national problem.

ive years ago, The CARES Act authorized the Federal Reserve to create emergency lending facilities in the name of aiding the US economy during the COVID-19 economic downturn. In a 2021 appraisal of the Fed lending facilities, several AIER Sound Money Project (SMP) scholars observed:

Although some facilities likely helped to promote general liquidity, others were primarily intended to allocate credit, which blurs the line between monetary and fiscal policy. These credit allocation facilities were unwarranted and unwise.

One such facility was the Municipal Liquidity Facility (MLF), which loaned money to state and local governments. In my recent AIER White Paper “Enabling Bad Behavior,” I examined the two entities that took loans from the MLF: the State of Illinois and the New York Metropolitan Transportation Agency (MTA). I find that, while the MLF loans do not show any effect on the fiscal health of these entities during or after 2020, the MLF distorted the boundary between fiscal and monetary policy.

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thedailyeconomy.org

by Thomas Savidge

October 2, 2025




How to Prepare for ARPA SLFRF Closeout.

he U.S. Department of the Treasury has released new guidance (PDF) on how communities should prepare to close out their American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) awards.

Per statute, recipients must continue reporting on their SLFRF projects through 2027, even after funds are fully spent. However, Treasury has now introduced an early closeout option, a long-requested capability that NLC has consistently advocated for on behalf of municipalities nationwide.

As a reminder, closeout is not the same as being administratively closed in the reporting portal. Administrative closure occurs when a municipality misses a reporting deadline, and Treasury staff automatically lock the portal for that period. Past reporting portals cannot be reopened, but all reports are cumulative and continue forward.

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National League of Cities

by Dante Moreno

October 2, 2025




Would The US Government Want To Issue CAT Bonds At Scale To Finance Losses From Climate Change?

The alternative is taxation and greater deficits

Climate week just concluded in New York City. Instead of joining the chorus on how the US has withdrawn from the conversation, I thought I might write about something constructive. I have always worried that climate losses will eventually be socialized via greater deficits and eventually via greater taxation. What might an alternative look like? A private sector funded financing vehicle that can transfer risk from victims to a more risk loving investor, in exchange for appropriate returns. That is, something like CAT bonds.

How do CAT bonds work?

For those who may not be familiar, CAT bonds are effectively insurance on tightly defined catastrophic climate events. The actual structure is a bit complicated. An SPV (special purpose vehicle) is formed by an insurance company. Investors pay let’s say $100 million to the SPV. This money will be used to pay out insured parties should the insurance company have to pay up if disaster strikes. Let’s say the disaster is a 7.0 earthquake in a specific tightly defined region. The cash that comes in from investors is usually invested in US treasuries, which pay say 5% per annum.

The insurance company hands off the premiums it receives from selling coverage of $100 million to the SPV. Let’s say that the premium is 6.5% on $100 million. The cumulative returns of 6.5% plus 5% on T-bills invested is passed on to investors every year till the disaster strikes. If disaster does not strike, the $100 million is returned to CAT bond investors at the end of the pre-arranged term, say at the end of three years. If the earthquake of 7.0 or higher does strike, the insurance company pays off the $100 million to insured parties.

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Forbes.com

By Shivaram Rajgopal, Contributor
I am the Kester and Brynes Professor at Columbia Business School and a Chazen Senior Scholar at the Jerome A. Chazen Institute for Global Business.

Sep 29, 2025, 07:13pm EDT




Catastrophe Bond Investors Betting on Disasters are Helping Make Insurance Affordable.

In many communities at high risk for natural disasters, a Wall Street financing tool that’s gaining popularity, called a catastrophe bond, may make it easier for homeowners to get insurance. On Oak Island, North Carolina, homeowners who face annual hurricane risk are seeing the impacts firsthand.

The interest in catastrophe bonds comes as insured property losses increased from $30 billion in 2015 to over $110 billion in 2024, adjusted for inflation, the Insurance Information Institute found, while homeowner insurance premiums increased 40% faster than inflation between 2017 and 2022, according to the Consumer Federation of America. Many insurance companies have left high-risk markets altogether.

Catastrophe bonds are contingent on whether or not a disaster takes place. Insurance companies sponsor bonds that are then purchased by investors, typically institutional investors. If a natural disaster does not take place, investors get a return on their investment. But if a disaster meeting certain thresholds takes place, money goes to insurance companies to pay out customers’ claims, and investors lose money. Catastrophe bonds are beneficial to insurers because they make large amounts of capital available to pay insurance claims. The bonds are appealing to investors because disasters that lead to insurance payouts are rare.

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CBS News

By Seiji Yamashita, Ash-har Quraishi

September 30, 2025




S&P Rating Changes Of 25 Major U.S. Cities Since 2000.

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01-Oct-2025 | 17:14 EDT




Fitch: US Public Power Cost, Rate Management Key to Credit Amid Capex Surge

Fitch Ratings-New York-30 September 2025: U.S. public power and electric cooperative’s capital spending surge will present capital planning and financial management challenges, echoing pressures last seen over a decade ago. Maintaining credit quality and ratings through this capex cycle will require effective cost management and disciplined rate setting, Fitch Ratings says.

Fitch estimates capital spending will nearly double over the next four years compared to the past four years, accelerating a trend that began in 2023. Utilities are ramping up investments to address growing demand and improve grid resiliency amid higher material and labor costs.

Public budgets, ongoing disclosures, and issuer projections indicate that spending will likely accelerate in 2025 and achieve record levels over the next three years. Aggregate and average annual spending will likely grow over 25% YoY over the next two years, peaking in 2026 at more than $34.6 billion and $291 million, respectively. Spending should moderate slightly to $30.9 billion and $260 million in 2028. Transmission investment will remain a significant component of capital plans. An even greater share of committed capital will be directed toward new generating capacity, particularly natural gas-fired capacity.

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Water Sector Applauds Introduction of Bipartisan Water System Resilience Bill.

Water sector groups are reacting favorably to the reintroduction of the Water Infrastructure Resilience and Sustainability Act. The bipartisan legislation would fund upgrades to drinking water, wastewater and stormwater infrastructure and make them more resilient against threats ranging from cyberattacks to extreme weather.

The bill was introduced in the House of Representatives last month by Rep. David Valadao (R-Calif.), Rep. Salud Carbajal (D-Calif.), Rep. Jeff Van Drew (R-N.J.), Rep. Troy Carter (D-La.) and Rep. Brian Mast (R-Fla.). The Water Infrastructure Resilience and Sustainability Act would reauthorize the following three water infrastructure resilience programs from Fiscal Year 2027 to Fiscal Year 2031 at current authorization levels:

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Water Finance & Management

by WFM Staff

October 6, 2025




5 Steps to Disaster-Proof Your City as FEMA Pulls Back.

FEMA is stretched thin, a GAO report warns. Its author offers advice for local leaders to respond strategically and build resilience now.

The Federal Emergency Management Agency has long been the insurance policy cities rely on when disaster strikes. But with its workforce shrinking and a new federal push to shift responsibility for disaster preparedness and recovery to state and local governments, that safety net is starting to fray, according to a U.S. Government Accountability Office report released earlier this month.

Local governments need to prepare now for the possibility of less support when the next hurricane, flood or wildfire hits, said the report’s author, Chris Currie, a director with GAO’s Homeland Security and Justice Team, in an interview.

When the 2025 hurricane season began on June 1, only 12% of FEMA’s incident management workforce was available to respond to disasters because most staff members were already in the field supporting more than 91 major disasters and emergencies across the country, the report states.

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smartcitiesdive.com

by Robyn Griggs Lawrence

Sept. 30, 2025




Vanguard Fund Overtakes BlackRock as Muni Market’s Biggest ETF.

Takeaways by Bloomberg AI

Competition is heating up in the rapidly growing arena of municipal-bond exchange-traded funds.

The Vanguard Tax-Exempt Bond ETF (ticker VTEB) now has $39.9 billion in assets after drawing in $4.3 billion so far this year, according to data compiled by Bloomberg. That has nudged it just past the $39.4 billion iShares National Muni Bond ETF (ticker MUB), which was long the largest fund in the category.

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Bloomberg Markets

By Shruti Singh and Amanda Albright

October 3, 2025




Why Taxable Municipal Bonds Outshine Investment-Grade Corporates.

When it comes to building a fixed income portfolio, it’s all about balancing risk and reward. In this case, it’s the amount of yield you’re getting in exchange for the amount of credit and duration risk. Finding the right combination is crucial to minimizing losses, maintaining stability, and achieving a sufficient yield. Sometimes, the market manages to hand investors a gift that allows them to reduce their risk while increasing their returns.

Today, that proposition exists in the world of taxable municipal bonds.

Investors often ignore taxable munis in favor of their tax-free sisters. That’s a real shame, considering today, taxable munis could offer a better return potential than traditional corporate bonds. With them, they can find the holy grail of reducing credit risk while still offering a top yield.

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dividend.com

by Aaron Levitt

Oct 01, 2025




Trump Funding Risks Put Muni Market Investors on Alert.

Takeaways by Bloomberg AI

The steady drum beat of federal funding threats totaling billions of dollars is renewing municipal investors’ qualms about lower-rated state and local borrowers.

President Donald Trump’s administration has frozen $18 billion in infrastructure dollars for New York City and another $2.1 billion for rail projects in Chicago, viewed as a bid to use the government shutdown to punish political opponents. His administration said in September it plans to redirect $2.4 billion intended for transit in California to other projects. Earlier this year, his administration temporarily stalled billions in education funding intended for schools nationwide.

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Bloomberg Markets

By Shruti Singh

October 6, 2025




Citadel Securities Begins Processing Trades for Small Banks.

Takeaways by Bloomberg AI

Citadel Securities has begun processing trades for small and mid-tier banks in a partnership aimed at providing them better pricing on fixed-income securities, according to President Jim Esposito.

“I think there are probably a hundred banks around the globe that want to service their end-user client in markets, jurisdictions, in places we’re never going to touch,” Esposito said in a Bloomberg TV interview from the sidelines of the firm’s conference on Monday.

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Bloomberg Industries

By Katherine Doherty

October 6, 2025 at 12:00 PM PDT




Why Longer Municipal Strategies Make Sense Now.

Municipal bonds have made their opening move. After months of being labeled “cheap,” the tax-exempt market responded with a rally across the full curve. Yields dropped, ratios tightened, and early investors saw results. But if you missed the first wave, don’t worry. There’s still opportunity ahead, especially for those focused on what’s next.

Munis may not grab headlines, but their quiet consistency and tax advantages could make them a smart choice for investors seeking stability and income, especially in today’s market. This isn’t a “get out” moment. It’s a “stay and enjoy the yield” one. For many investors, it’s a chance to rethink how munis fit into your portfolio and capitalize on the value that remains.

Going long still makes sense

Even after the rally, the municipal bond curve remains historically steep. Investors can still earn significantly more income by moving into longer maturities, especially in high-quality bonds.

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Fortune

by Paul Malloy

Sat, October 4, 2025




Bond Markets End Q3 on a High Note.

Falling yields lifted bond returns and rewarded patient investors.

At the close of 2025’s third quarter, all major fixed-income Morningstar Categories showcased positive returns, but it wasn’t a smooth-sailing ride.

In July, the 10-Year Treasury yield hovered between cycle highs of 4.35% and 4.45%, and credit spreads widened due to higher-than-expected inflation numbers and political uncertainty. However, as the quarter progressed, the market sentiment shifted from caution to renewed optimism. Treasury yields decreased across the curve, and in September, the Federal Reserve reduced its overnight borrowing rate for banks by 25 basis points, reinforcing expectations for further policy support. While yields fell, the Treasury yield curve steepened during the quarter, with short-term yields falling more than long-term rates, signaling investor caution about the long-term economic outlook. Meanwhile, credit-sensitive sectors staged a rebound, and almost all fixed-income sectors promptly gained back their July losses. The Morningstar US Core Bond Index, a proxy for the US-dollar-denominated investment-grade bond market, gained 2.04% during the quarter.

In what turned out to be a volatile quarter, investors who took reasonable duration and credit risk were rewarded in the end. A typical long-term bond Morningstar Category fund, which invests in long-dated investment-grade corporate and government debt and carries a duration of 11.2 years, gained 3.66% during the quarter.

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morningstar.com

by Saraja Samant

Oct 2, 2025




The Secret’s Out – Municipal Bonds Are Having a Moment

Yields are Higher & Investment Dollars are Flowing into Municipal Funds

Municipal bonds are no longer flying under the radar. Their value is gaining widespread recognition as investors respond to a rare combination of attractive yields, strong credit fundamentals, and tax-efficiency. The recent surge in demand reflects a growing awareness that U.S. municipal bonds are well-suited to meet a range of investment goals—particularly in today’s environment of economic and political uncertainty.

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advisorhub.com

by Tom Kozlik, HilltopSecurities

October 1, 2025




Municipal Bond Fund Outflows and the Resurgence of Long-Duration Strategies.

Overview

– 2025 municipal bond market saw $3.3B Q2 outflows but shifted to $5B inflows in long-duration munis as investors hedge macro risks.

– Fed easing and steepening yield curves boosted long-muni appeal, with high-grade bonds offering tax-equivalent yields rivaling corporates.

– Record 2024-2025 municipal issuance and active management needs highlight market dispersion, as strong states like Texas outperform weaker jurisdictions.

– High-yield muni funds like FEHIX (4.43%) outperformed benchmarks, but trade uncertainties and tax law changes pose ongoing challenges.

– Analysts advise selective credit analysis, favoring diversified municipalities with strong demographics over those with pension liabilities or population decline.

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ainvest.com

Written by Isaac Lane

Friday, Oct 3, 2025




Why This JPMorgan Analyst Says Now Is the Time to Buy Municipal Bonds.

In this week’s episode of WSJ’s Take On the Week, co-hosts Gunjan Banerji and Telis Demos explore how the Federal Reserve’s independence, a government shutdown and volatility around tariffs are driving gold to hit record highs. Then, does videogame maker Electronic Arts’ $55 billion buyout signal a long-awaited M&A boom? Plus, they discuss the “debasement trade” and how concerns over the U.S. dollar are also fueling a rally in bitcoin ETFs issued by firms like BlackRock.

Then after the break, Gunjan sits down with Neene Jenkins, head of municipal research at JPMorgan Asset Management, to dive into municipal bonds, which are used to fund infrastructure, highways, sewer systems and school districts. Is higher education issuing more debt because of federal challenges? Later, they discuss the sector’s resilience to government shutdowns, and Jenkins answers a key question: How likely is a recession?

WATCH VIDEO.

THE WALL STREET JOURNAL

SUNDAY, OCTOBER 5, 2025




S&P Credit FAQ: Understanding The Performance Of Public And Private Ratings

Ratings are forward-looking opinions about creditworthiness of issuers and obligations. Beyond mere symbols, each rating reflects a multi-dimensional view of credit–indicating a common and transparent global benchmark for investors and market participants in their decision-making processes.

For an issuer, the rating represents our assessment of the obligor’s capacity and willingness to meet their financial commitments as they come due. This rating is a relative ranking of creditworthiness. Higher ratings, such as those in the investment-grade spectrum (‘BBB-’ and above), reflect our expectation that these borrowers are more likely to be able to meet their obligations during stress events compared to lower-rated issuers.

Comparatively, speculative-grade ratings (‘BB+’ and below) carry a higher risk of borrowers failing to meet their obligations and are more at risk to adverse events. A failure to meet financial obligations is classified as a default. The relative likelihood of default is based upon the ratings scale, regardless if a rating is on public or private credit.

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24-Sep-2025 | 10:46 EDT




S&P Credit FAQ: The Changing U.S. Federal-State Relationship’s Impact On State Credit Quality

S&P Global Ratings’ ratings on U.S. states remain stable, following a few years of better-than-expected economic conditions, revenues exceeding forecasts, and reserves built-up and maintained at or near all-time high levels. S&P Global Ratings Economics expect the U.S. economy to grow in 2026 and 2027 (GDP 1.8% each year) and unemployment to peak at 4.6% by mid-2026, typically viewed as relatively benign economic conditions. (For our latest economic forecast see “Economic Outlook U.S. Q4 2025: Below-Trend Growth Persists Amid A Swirl Of Policy Shifts,” Sept. 23, 2025.)

However, we anticipate rising pressures on state credit quality during the same period, partly from state-level policy changes, such as maintaining expanded Medicaid benefits following the pandemic or recently enacted tax rate reductions. Furthermore, financial pressure could result from the changing relationship that states have with the federal government.

Policy change at any level of government can lead to uncertainty, which often leads to greater difficulties in budgeting on both the revenue and expenditure sides of the ledger. As uncertainty persists, we have received questions from issuers and investors on how it could influence state budgets and states’ overall financial health.

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24-Sep-2025 | 11:28 EDT




Fitch U.S. Public Finance: 2025 Rating Actions to 26 September

This is the U.S. Public Finance Rating Action Report 2025 Year to Date (1 January to 26 September).

Access Report

Mon 29 Sep, 2025 – 4:17 AM ET




Status and Trends of Unfunded Liabilities of State and Local Pension Funds.

This study analyzes the status of US public pension systems, covering over 90% of public pension assets across states, cities, and counties. At the close of FY 2023, total reported net pension liabilities were approximately $1.65 trillion, with unfunded liabilities continuing to exceed the size of the US municipal bond market. To stabilize pension systems, state and local governments would need to contribute an additional $96 billion annually.

Key Takeaways

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The Hoover Institution

By: Oliver Giesecke

September 29, 2025




America’s Office Slump Is Gutting City Budgets and Taxpayers Are Paying the Price.

Across major U.S. cities, the long tail of the pandemic continues to reshape commercial property values and the budgets that depend on them. Nowhere is this more visible than in the offices that once served as the backbone of urban tax bases. The sharp decline in valuations has left municipal finance directors juggling budget forecasts, property owners challenging assessments, and homeowners increasingly shouldering the difference.

In New York, office buildings have lost roughly $29 billion in assessed value between 2021 and 2025, a plunge of around 16 percent when adjusted for inflation. That slide has translated into a $1.16 billion shortfall in property tax receipts, with more than 90 percent of the hit coming from office properties. Vacancy levels remain about twice what they were before the pandemic. Even so, the impact on the city’s $112 billion budget has been muted. Property taxes now make up a smaller share of revenue while personal and business income taxes, which have grown more quickly than inflation, fill the gap. The trade-off is volatility: those revenue streams rise and fall faster with market cycles than stable property taxes. Budget officials acknowledge the shift leaves the city more exposed to downturns, though rating agencies point to the city’s still-healthy reserves and the possibility of new levies under a future administration as cushions against deeper fiscal pain.

Washington, D.C. illustrates what happens when federal belt-tightening collides with a shaky office market. Local budget projections already anticipate office property tax receipts falling by nearly 10 percent in 2025 and another 12 percent in 2026. Officials warn that the rising tide of vacancies could weaken finances further as the city absorbs spending cuts triggered by federal tax reforms and other policy changes. To plug the gap, the Bowser administration is weighing sales tax hikes and new gambling levies. Economists at the city’s Office of the Chief Financial Officer are blunt: real estate taxes will no longer be the primary driver of local revenue, meaning more reliance on sales and income taxes and, with it, more volatility. Programs will have to compete more directly for scarce dollars as the revenue mix shifts.

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propmodo.com

By Travis Barrington

Sep. 24, 2025




Half the States Don’t Have Enough Money to Cover All Their Bills, Report Finds.

Some states aren’t disclosing all their costs, masking whether budgets are truly balanced.

Half of American states do not have enough funds to pay their bills, according to a new analysis released Thursday.

The nonprofit Truth in Accounting, which advocates for more transparency in public finance, released its Financial State of the States report. It concluded that 25 states were unable to cover all their financial obligations at the end of fiscal year 2024, which for most states ended June 30.

While every state but Vermont mandates a balanced budget, the report says elected officials often exclude certain costs such as future pension obligations and deferred maintenance from their budget calculations.

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stateline.org

By: Kevin Hardy

September 25, 2025




Municipal Bonds: The State of States’ Fiscal Health

Here, we answer investor questions about the fiscal standing of the states that are among the largest municipal bond issuers.

Key Takeaways

As investors consider the performance of the municipal bond market going into the fourth quarter of 2025, we believe there are many positive factors to note. Year to date through September 12, the Bloomberg Municipal Bond Index (muni index) returned 2.70%. Starting yields on municipal bonds remain attractive; the muni index yield at that date stood at 3.56%, representing a 6.0% tax-equivalent yield. Longer-dated municipal bonds (maturities of 22 years or greater) yielded 4.6%, or about 7.8% on a tax-equivalent basis. (Tax-equivalent yields based on the top 40.8% tax rate.)

Clearly, the asset class retains its appeal for investors seeking tax-free income. Against that backdrop, however, we continue to receive questions about the overall fiscal health of U.S. states, the major issuers of general obligation municipal bonds. We are also asked about the state and local governments that are among the largest individual issuers within the asset class. Here, we will address these questions and offer some observations about their implications for investors.

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lordabbett.com

By Richard T. Gerbino, Roman Schuster, Brandon J. Crofton

September 24, 2025




Fitch: Staffing Rule Repeal Would Ease Pressure on U.S. Nursing Facilities

Fitch Ratings-New York/Austin-25 September 2025: A repeal of skilled nursing facilities (SNF) minimum staffing standards would reduce the risk of potential new cost pressures on U.S. life plan communities (LPCs) with SNFs, Fitch Ratings says.

The Centers for Medicare and Medicaid Services (CMS) have drafted an interim final rule that would repeal the 2024 rule establishing minimum skilled nursing staffing ratios, although details remain unclear. Congress postponed implementation of the 2024 rule until 2034 as part of the 2025 tax and spending bill.

LPCs with significant SNF services have limited ability to raise rates given their exposure to government payors. Government reimbursement rates, particularly Medicaid rates, have not kept pace with heightened expenses related to staffing SNFs.

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Fitch U.S. Water and Sewer - Peer Credit Analysis

Fitch Ratings’ 2025 peer credit analysis report compares recent financial performance of retail and wholesale water and sewer systems. The ratios highlighted include some of the financial calculations used to compare utility systems during Fitch’s committee process and can assist market participants in making their own comparisons. Financial metrics represent only one key component of Fitch’s utility credit analysis. To view Fitch’s full water and sewer criteria, see “U.S. Water and Sewer Rating Criteria.”

Access Report

Wed 24 Sep, 2025 – 10:39 AM ET




New NLC Report Reveals Cities’ Top Infrastructure Priorities: Water, Roads, and Mobility Projects Lead the Way

Washington, D.C. — The National League of Cities (NLC) today released its 2025 Municipal Infrastructure Conditions Report, providing the most up-to-date look at how cities, towns and villages across the country are funding, prioritizing and managing critical infrastructure projects.

Drawing on survey data, the report highlights the infrastructure investments municipalities say are most vital to supporting public health, safety and economic growth.

Key Findings from the Report Include:

Water systems, roads and bridges rank as the top three infrastructure priorities for over 70% of municipalities.

“Local leaders are on the frontlines of keeping water systems safe, roads and bridges functional and communities connected,” said Clarence E. Anthony CEO & Executive Director of the National League of Cities. “The Municipal Infrastructure Report shows how cities, towns and villages of all sizes are innovating in the face of rising costs and complex permitting processes to deliver the infrastructure residents depend on for a thriving community.”

The report also underscores how infrastructure investments are linked to broader community goals — from affordable housing development to climate resilience and economic inclusion.

Access the full report and learn more.

September 23, 2025

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The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people across the country. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, X, LinkedIn and Instagram.




PWF’s 3‐Step Guide to Getting More American Capital into American Transport Infrastructure.

Transportation Secretary Sean Duffy joined the inaugural meeting of the Department of Transportation Advisory Board earlier this summer at the White House. Overall, the meeting was extraordinarily promising for American transportation P3s. Again and again, Secretary Duffy mentioned the need to find ways to leverage private investment and create projects that attract private capital, and he wants to reform things quickly. He told the Board that “the mission is speed. We’ve got to do this fast.”

However, right out of the gate, the Secretary mentioned a more surprising concern: “In a number of our projects, what we see is opportunity for private capital. And often times…it’s frustrating because it’s a lot of foreign private capital. And it seems like there’s some pretty good returns that they’re making on American infrastructure. It’d be great if we were able to get American private capital into American infrastructure and see those returns go to American investors. I don’t think we’ve done a very good job of that thus far.”

Foreign investors – it seems they’re a problem in every country. American voters want American firms and funds to develop American infrastructure. The same goes for every other country, or Texans for Texas and so on. Dismissing that sentiment as narrow parochialism, however, can lead one to neglect the very real political risk that it creates. People, and the politicians they elect, simply tend to see infrastructure as a more zero-sum transaction when foreign firms are investing.

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Public Works Financing

July 2025




Public Schools Lean on Reserves as Financial Pressure Grows.

America’s public schools’ financial health is deteriorating even as they are borrowing from debt markets at a frenzied pace. Bloomberg’s Erin Hudson explains more with Bloomberg’s Scarlet Fu on Bloomberg Markets.

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Bloomberg Markets – Muni MomentTV Shows

September 25th, 2025, 11:46 AM PDT




PAB Use for Multifamily Housing Continues to Grow; Financed-By Test Change May Stretch Cap - Novogradac

The use of private activity bonds (PABs) to finance affordable multifamily housing continues to set records, making the pending decrease in the financed-by test a likely way to further maximize the resource.

The Council of Development Finance Agencies (CDFA) released the CDFA Annual Volume Cap Report last week, the first such report in three years. The report covers PAB issuance for calendar years 2021-2023.

Multifamily PAB issuance set a record of $21.67 billion in 2023, continuing a nearly decadelong increase in such use. For comparison, only $6.60 billion in PABs were reported for multifamily housing issuance in 2015, the last year before a steady increase in issuance. Even beginning in 2016–when multifamily PAB issuance jumped to $14.00 billion–the compound annual growth rate (CAGR) from 2016 to 2023 for such PAB issuance was 6.44%. Over the same period, the CAGR for inflation was barely half that, at 3.36%.

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Novogradac

Published by Peter Lawrence on Wednesday, September 24, 2025 – 10:45AM




Brighter Future for U.S. Multifamily Development.

The Opportunity Zone (OZ) program, a national model to spur private investment of housing in underserved areas, has been extended by Congress beyond 2026, marking a significant opportunity for real estate professionals. This innovative initiative not only helps rebuild communities but is a win-win for residents, property developers, and investors. The program’s success in transforming economically distressed areas has proven its value, making it crucial for industry leaders to continue supporting it.

Opportunity Zones originated through the Tax Cuts and Jobs Act of 2017, a market-driven mechanism to channel private capital into America’s economically disadvantaged communities. The program designates particular census tracts where private investors can defer, reduce, and potentially eliminate capital gains taxes by deploying their investment capital to qualified housing projects. For investments held beyond the 10-year mark, appreciation becomes entirely tax-exempt, and depreciation is not recaptured at sale, creating a powerful incentive for “patient capital.”

This tax framework departs from traditional community development approaches and allows urban revitalization without direct government subsidies. In less than a decade, OZs have reversed the downward trajectories in many targeted communities by allowing private stakeholders to do the heavy financial lifting.

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Urban Land

By Brad Vogelsmeier

September 22, 2025




FEMA Is Paralyzed. Disaster-Torn Communities Are Paying the Price - WSJ

St. Louis’s tornado was months ago, but it’s still waiting for hundreds of millions in federal recovery funds to arrive. It’s part of Trump’s plan to shift responsibility to the states and shrink the agency.

ST. LOUIS—Minutes after a mile-wide tornado struck this city on an otherwise beautiful day this spring, Ali Rand heard her husband shout as he surveyed the devastation surrounding their tony neighborhood of historical homes. “Everything is gone,” Rand, 38, remembers him saying.

The tornado, packing winds of 152 miles an hour, hit the city with blunt force, killing five people. In the weeks following the storm, Rand and other private citizens mobilized teams of residents whose neighborhoods had been destroyed to clean up debris, remove fallen trees and rebuild shattered homes.

Largely missing from the recovery efforts, according to Rand, city officials and other residents: the Federal Emergency Management Agency.

“I’ve never seen someone from FEMA out on the streets,” Rand said.

That is by design.

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The Wall Street Journal

By Scott Patterson and
Tarini Parti

Sept. 28, 2025 9:00 pm ET




Navigating Municipal Bond Opportunities in Q2 2025: Strategic Duration and Credit Selection in a Shifting Rate Environment

Overview

– Q2 2025 municipal bond market faces pivotal shifts due to Fed rate cut signals, credit divergences, and macroeconomic risks.

– Strategic duration management gains traction as long-dated munis offer tax-equivalent yields exceeding 5% for top tax bracket investors.

– Credit selection emphasizes geographic diversification, favoring fiscally strong states like Texas while avoiding underfunded pension jurisdictions.

– Macroeconomic tailwinds from potential TCJA expiration and yield curve steepening contrast with tariff risks requiring sector-specific risk adjustments.

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ainvest.com

Written by Cyrus Cole

Tuesday, Sep 23, 2025




Municipal Bond Data Firm Spline Data Launches Primary Market Analytics Platform.

Spline Data’s third major data product produces machine-learning-derived new issue scales on demand

CHICAGO, Sept. 24, 2025 /PRNewswire/ — Spline Data, a leading provider of quantitative U.S. municipal bond pricing data and analytics, today announced the launch of its real-time primary market pricing tool designed to bring greater efficiency, accuracy, and customization to the bond issuance process.

Spline’s latest analytics tool provides dealers, advisors, issuers, and asset managers with next-generation modeling technology to generate predicted scales for hypothetical municipal bond deals across any range of call dates, coupons, and structures. Using traditional municipal trading intuition combined with scalable machine learning, Spline’s new issue platform leverages swaths of otherwise ignored market data to generate meaningful insights, enable fine-tuned pricing power, and enhance negotiation capabilities.

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Bank of America Expects Muni-Bond Supply to Rebound in October.

The municipal-bond market’s biggest underwriter expects an increase in debt sales in October after the asset class saw state and local government borrowing slow this month.

Bank of America Corp. strategists led by Yingchen Li and Ian Rogow are forecasting municipal issuance of $58 billion in October, according to a research note published Friday.

Strategists at the firm, which is the top underwriter of state and local debt, are expecting the market to resume its busy pace of debt sales. Muni bond sales are on track to fall about 6% this month compared to the prior year, with issuance totaling $44 billion so far, according to data compiled by Bloomberg. Some municipalities may have held off on borrowing in September in the hopes that the Federal Reserve would cut interest rates.

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Bloomberg Markets

By Faith DiBiagio

September 29, 2025




S&P U.S. Local Government Pension Funding Improved In Fiscal 2024, Helping To Buoy Credit Ratings

Key Takeaways

Why This Matters

For many years, pensions have been a drag on credit quality for some U.S. LGs. Over the last two years, however, we have observed improvement in pension costs and funded levels for U.S. LGs (municipalities, counties, and school districts), as detailed in the graphic below. Overall, median pension costs as a percentage of governmental revenues decreased to 4.5% from 4.7% from fiscal 2022 to fiscal 2024, while the funded ratio improved to 80% from 78%.

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16-Sep-2025 | 11:09 EDT




Fitch Ratings Updates Its Rating Definitions.

Fitch Ratings-Barcelona/Milan/New York-19 September 2025: Fitch Ratings has updated its Rating Definitions, which outline how Fitch defines the ratings it assigns. The main changes include:

— Clarifications to make the fundamental principles underpinning the use of rating Outlooks and Watches more explicit.
— Clarifying edits and simplifications to the obligation rating scale section to evolve the document structure and to make the distinction between probability of default only scales and scales that incorporate recovery considerations clearer.
— Minor editorial changes to improve accuracy, structure and document flow.

Fitch’s full Rating Definitions are available here. For Fitch’s coverage on rating definitions, please click here.




Fitch: How Rating Signals Are Applied

Read the Fitch report.

Fri 19 Sep, 2025




Fitch U.S. Higher Education Data Comparator: 2025

Fitch Ratings’ U.S. Higher Education Data Comparator provides ratings and key statistics for all Fitch-rated Public and Private Colleges and Universities. This tool enables clients to compare indicators across different system types, regions, rating categories, and years. The current edition offers a snapshot of the financial status of Fitch-rated Higher Education entities as of September 10, 2025.

Access Report

Tue 23 Sep, 2025 – 10:10 AM ET




S&P U.S. Not-For-Profit Health Care Rating Actions, August 2025

In August 2025, S&P Global Ratings maintained 23 ratings, took four positive ratings actions, and took two negative rating actions in the U.S. not-for-profit health care sector. In addition, we revised the outlooks on five issuers favorably, and one issuer unfavorably, without changing the ratings.

Included in the month’s four positive rating actions was University of North Carolina Rex Healthcare, related to its integration with University of North Carolina Healthcare’s obligated group. Also included in the month’s activity were ratings assigned to 12 new debt issuances for currently rated organizations, all of which were affirmed except for one favorable outlook revision and one downgrade.

The 12 rating actions and outlook revisions consisted of the following:

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18-Sep-2025 | 12:08 EDT




US Cities Issue Bonds With Notable Climate Exposure This Week.

What’s going on here?

Several US school districts and local governments raised funds with new municipal bonds this week, but fresh data from ICE Climate Data flagged many of these as having some of the nation’s highest climate risks.

What does this mean?

Municipal bonds from Ocean, New Jersey; Falmouth, Massachusetts; and a handful of school districts in California, Louisiana, and Florida were all tagged with climate risk scores topping 3.9 out of 5. ICE’s scoring system marks anything over 3.0 as severe, meaning these places face significant threats from flooding, wildfires, or hurricanes. Ocean, NJ is the poster child, landing a perfect 5.0 flood risk on its $59 million bond sale. Falmouth, MA and Sulphur Springs, CA also stand out, with wildfire and general risk scores running high. Even large issues like Pinellas County, FL’s $150 million bond aren’t immune with a 3.9 risk reading. These scores blend a range of climate hazards and are catching more eyes among investors—who increasingly want to price in real-world risks to local infrastructure and finances.

Why should I care?

For markets: Climate risk is redefining what investors look for.

Climate data is quickly becoming a critical part of municipal bond investing. With ICE spotlighting high-risk areas, investors aren’t just assessing creditworthiness—they’re focusing on the physical risks that could drive up costs or disrupt communities. As climate disasters become more common, borrowers in high-risk regions may end up paying higher interest—or facing tighter funding terms—to attract buyers comfortable with the added uncertainty.

The bigger picture: Climate resilience is moving up the policy agenda.

Steep climate risk scores are putting American towns and schools on notice: long-term costs from disasters can quickly snowball into major budget strains. The growing focus on these risks is likely to shift how municipalities plan, borrow, and invest—pushing climate resilience and infrastructure upgrades higher up both local and federal agendas, and reshaping priorities from emergency funding to long-range city planning.

finimize.com




Pew: To Finance Coastal Resilience, States Turn to Innovative Policies and Partnerships

Pay-for-success initiatives, public-private collaboration, and environmental markets can deliver numerous benefits

Coastal wetlands—including tidal marshes, forested swamps, mangroves, and seagrasses—are among humankind’s most powerful natural allies. These ecosystems not only absorb and store large amounts of carbon but also protect communities from flooding and wildfires, provide habitat for commercially and recreationally important species, and filter pollutants and excess nutrients from the water. Yet these habitats are disappearing at alarming rates because of sea-level rise, erosion, and development. Further, communities seeking to protect and restore coastal wetlands have struggled to secure the funding needed to meet the scale of the challenge.

To help address these issues, the Blue Carbon Network—a Pew-hosted group that connects state agencies, practitioners, academic researchers, and nongovernmental organizations working on coastal conservation and climate initiatives—coordinated a webinar that highlighted innovative state-led programs and initiatives to finance coastal resilience projects. Experts from Maryland, Louisiana, and Duke University shared information about a variety of successful approaches. One example is emerging environmental markets, which assign monetary values to environmental benefits—such as cleaner air and water, or carbon emission reductions—that then can be bought, sold, or traded to encourage protection and underwrite conservation projects.

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The Pew Charitable Trusts

Authors: Jazmin Dagostino

September 17, 2025




Brookings: Rethinking Our Assumptions and Financing Tools for Community Resilience in the Face of Growing Climate Loss and Risk

Read the report.

The Brookings Institution

Matt Posner and Xavier de Souza Briggs

September 15, 2025




Bonds Are Getting Pricey. Munis Still Look Cheap and Could Rally.

In many corners of the bond market, it can be difficult for investors to find attractive yields. In contrast, municipal bonds still look like a bargain.

The Federal Reserve’s decision earlier this week to cut short-term interest rates poses a threat to income investors. It likely means smaller payouts from CDs, money-market funds, and other yield instruments.

For investors in long-term instruments such as bond mutual funds, the blow is less severe. Long-term interest rates don’t move in lockstep with the short-term federal-funds rate, and when rates do come down, investors can count on rising bond prices to cushion the blow. (Bond prices move in the opposite direction to rates.)

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msn.com

Story by Ian Salisbury




Municipal-Bond Funds Draw Wave of Cash on Bets of Fed Rate Cuts.

Takeaways by Bloomberg AI

Investors poured the most cash into municipal-bond funds earlier this month since at least 2007, according to CreditSights Inc.

That’s as they chased a rally in state and local government debt — driven by expectations that the Federal Reserve will resume cutting interest rates — and rebalanced portfolios as stock prices rose to records.

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Bloomberg Markets

By Martin Z Braun

September 22, 2025




Strategic Asset Allocation in High-Tax Coastal States: Leveraging SALT Cap Reforms for Real Estate and Municipal Bond Gains.

Overview

– The 2025 OBBBA Act raises the SALT deduction cap to $40,000, boosting affordability for high-tax coastal states like NY, CA, and FL.

– Tax savings from the expanded cap incentivize luxury real estate demand and municipal bond investments, with muni yields rising to 7.3% for high-income investors.

– 2024 municipal bond issuance hit $507.7B as investors capitalize on tax-exempt gains, while real estate markets in constrained coastal areas see surging demand.

– Strategic allocations combine real estate in high-tax suburbs with long-duration muni bonds, though risks persist as the cap reverts to $10,000 by 2030.

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ainvest.com

by Harrison Brooks

Friday, Sep 19, 2025 2:04 am ET




A Hidden Gem: High Yield Municipals - BlackRock

Key takeaways

  1. For investors in certain tax brackets, high yield municipal bonds, or munis for short, may generate a higher tax-equivalent yield (TEY) than other high yielding sectors, such as high yield corporate bonds.
  2. High yield muni bonds have historically had less credit risk than corporate high yield bonds, proven by lower default and higher recovery rates.
  3. The complex and fragmented nature of the high yield muni market gives actively managed strategies the opportunity to identify and capitalize on inefficiencies.
  4. The iShares High Yield Muni Active ETF (HIMU) seeks to uncover attractive opportunities in the high yield muni bond market, delivering them through the accessible and efficient ETF wrapper.

The high yield muni market is a long-existing, yet often overlooked, segment of fixed income markets. It is typically made up of small issuers, fragmented across industries, is often only mentioned when something goes wrong (e.g., Puerto Rico), and ultimately can be difficult for investors to build portfolios on their own. The reality, though, is investors have often missed out on what has proven to be a market with higher after-tax yields1, and lower default rates than high yield corporates.2 Notably, investors can now implement a thoughtfully constructed portfolio, managed by an experienced team who is well versed in the nuances of this market, all through the efficiency of the ETF wrapper, using the iShares High Yield Muni Active ETF (HIMU).

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blackrock.com

Sep 16, 2025 | By Patrick Haskell Ryan McDonald, CFA




Pimco Debt Move in Texas Recycler Brings Credit Fights to Munis.

Takeaways by Bloomberg AI

A small investor is pushing back against bigger asset managers bringing the sharp-elbowed tactics of the corporate bond world to the normally placid confines of municipal finance.

Stephen McMullin, who manages less than $10 million for Fulcrum Point Capital, took to court this week to object to some of the maneuvering that has gone on around the bankruptcy of Aleon Metals LLC, a Texas recycling company that borrowed money in the municipal bond market.

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Bloomberg Markets

By Eliza Ronalds-Hannon and Martin Z Braun

September 18, 2025




Long Dated Munis Turn Around, Enjoy Best Month Since 2023.

Takeaways by Bloomberg AI

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Bloomberg Markets

By Elizabeth Rembert and Amanda Albright

September 15, 2025




Municipal Bond Market Volatility and Project Delays in Economically Disadvantaged Regions: Navigating Risk and Reward in High-Yield Muni Deals.

Summary

– U.S. municipal bond markets show rising volatility in economically disadvantaged regions due to project delays, demographic shifts, and fiscal mismanagement.

– High-yield muni deals face execution risks as delayed infrastructure projects strain budgets and erode investor confidence through regulatory hurdles and operational complexities.

– Demographic challenges like declining populations and weak tax bases amplify default risks, forcing investors to balance elevated returns against potential downgrades.

– Effective risk assessment requires granular due diligence on project timelines, demographic analysis, and leveraging industry expertise from platforms like the Municipal Forum of New York.

– Institutional initiatives such as training programs aim to strengthen fiscal transparency and governance, indirectly mitigating systemic risks in high-yield municipal bond markets.

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ainvest.com

by Oliver Blake

Monday, Sep 15, 2025




SIFMA US Municipal Bonds Statistics.

SIFMA Research tracks issuance, trading, and outstanding data for the U.S. municipal bond market. Issuance data is broken out by bond type, bid type, capital type, tax type, coupon type and callable status and includes average maturity. Trading volume data shows total and average daily volume and has customer bought/customer sold/dealer trade breakouts. Outstanding data includes holders’ statistics. Data is downloadable by monthly, quarterly and annual statistics including trend analysis.

YTD statistics include:

Download xls

September 11, 2025




S&P 2025 Rating Action Update On U.S. Not-For-Profit Retail Electric And Gas Utilities.

Key Takeaways

This report covers retail public power utilities, as well as distribution cooperatives. It also includes combined retail utilities that derive most of their net revenue from electric operations. The report excludes wholesale and generation and transmission cooperatives. The 2025 U.S. public power sector outlook remains negative, where it was placed in 2024. The negative sector outlook reflects our view that NFP public power, electric cooperative, and gas utilities face ongoing exposure related to rising operating expenses and costs of capital investment. Climate change, energy transition, and load growth underlie these cost pressures, affecting utilities and constraining rate-making flexibility. In addition, we revised more outlooks to negative than to stable or positive, due to delayed cost recovery, weakened competitive position, deterioration in financial performance, and due to our evolving view of heightened long-term credit exposure from potential future liabilities and infrastructure costs associated with wildfires in California.

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08-Sep-2025 | 12:57 EDT




S&P: U.S. Small Utility Systems Face Big Challenges To Maintain Credit Quality

Key Takeaways

Why This Matters

S&P Global Ratings maintains ratings on approximately 2,000 utilities–of which 40% are considered medium to large systems and 60% are considered small systems. Despite their small size and more limited operations, these entities face the same challenges as their mid-to large-size peers with typically less financial and personnel resources to address them, which could lead to increased credit pressure and rating volatility. The American Water Works Association (AWWA) notes the “unique challenges that small systems face can include funding, staffing, training, and compliance. They may lack in-house technical expertise to address complex issues such as emerging contaminants, climate change impacts, and planning system upgrades.”

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10-Sep-2025 | 12:28 EDT




S&P 2025 Rating Action Update On U.S. Not-For-Profit Retail Electric And Gas Utilities

Key Takeaways

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08-Sep-2025 | 12:57 EDT




S&P Sustainability Insights: Why Planning For A 2.3°C Warmer World Is Critical This Decade And Next

Key Takeaways

— Using probabilistic analysis, we estimate a 90% likelihood that, by 2040, the average global temperature will exceed the Paris Agreement’s goal of 1.5° Celsius (1.5 C) above pre-industrial levels. And there is a 50% likelihood of it exceeding 2.3 C. This suggests that–as a baseline–all sectors, including households, may want to prepare for the impacts of physical climate risks associated with a 2.3 C world.

— If we’re not ready, there’s a 50% chance that economic costs from global warming would accumulate to 9%-33% by 2040. This is our finding after integrating the potential economic impacts of climate change into our probabilistic model. In a more extreme case (90th percentile), the average temperature could be 2.8 C higher than preindustrial levels by that time.

— Yet, globally, climate adaptation and resilience needs remain largely unmet. We believe this is due, in part, to uncertainties and data gaps associated with climate risk modelling, long and costly implementation of adaptation and resilience investments, and greater societal benefits than private benefits, all of which could put such investments on the back burner.

— We believe our probabilistic model supports the assessment of physical climate risks, as well as adaptation and resilience planning, by adding likelihoods to risk portrayed in existing scenario analysis. Our model translates uncertainty regarding energy transition pathways and their impacts on climate change into risk distribution, and provides a simpler way to gauge adaptation needs and potential related losses.

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15-Sep-2025 | 07:13 EDT




S&P Sustainability Insights: Probabilistic Distributions Of Global Temperatures And GDP: A Technical Guide

In the report “Why Planning For A 2.3°C Warmer World Is Critical This Decade And Next,” Sept. 15, 2025, S&P Global Ratings proposed a probabilistic approach to assessing the likelihood of global temperature rise and the economic questions. Using probabilistic analysis, we estimate a 90% likelihood of the average global temperature exceeding the Paris Agreement’s goal of 1.5° Celsius (1.5 C) above preindustrial levels by 2040 and a 50% likelihood of it exceeding 2.3 C. Here we summarize the principal results of our model and the methodology behind it.

A. Probable GMST Outcomes And Associated GDP Impacts

Our modeling of the global mean surface temperature (GMST) indicator incorporates nearly 9,000 emissions scenarios and includes the effects of uncertainty in climate sensitivity (see chart 1, which shows lower-bound GMST values as a function of time at different levels of probability).

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15-Sep-2025 | 06:54 EDT




Fitch U.S. Not-For-Profit-Life Communities Median Ratios Monitor: 2025

Operations for U.S. not-for-profit LPCs stabilized in fiscal 2024, with improved median occupancy and revenue growth. Liquidity and coverage ratios were stable to improving, driven by stronger cash flow and moderated expense growth.

Access Report

Wed 10 Sep, 2025 – 10:24 AM ET




Fitch: U.S. Life Plan Communities Show Continued Stabilization and Recovery

Fitch Ratings-Austin/New York-10 September 2025: U.S. Not-for-Profit Life Plan Communities (LPCs) demonstrated continued stabilization throughout 2024, with median occupancy improving across service lines, according to a new Fitch report.

Demographic demand led to sustained high occupancy, which supported revenue and net entrance fee growth, while easing expense pressures improved operating performance. Liquidity and coverage ratios were stable to modestly stronger, aided by improved cash flow, favorable investment results, and more moderate capital spending.

“While the sector has shown meaningful progress over the last year, pressures remain,” said Margaret Johnson, Senior Director at Fitch Ratings. “LPCs with greater skilled nursing exposure face disproportionate strain from higher staffing costs, limited reimbursement, and reduced flexibility to adjust operations. Since the pandemic, these challenges have contributed to heightened rating stress and, in some cases, defaults.”

Fitch Ratings maintains public ratings on 162 LPCs, with 161 included in the 2025 medians, comprising 116 investment grade and 45 below investment grade providers. The median rating is ‘BBB’, which accounts for just over half the portfolio, while the number of below investment grade ratings has risen over the last decade largely due to new issuers rather than downgrades. Type A contract providers remain the largest share at 36%, followed by Types B and C, with Type D rental agreements making up only 4% of the portfolio.

The full report is available at www.fitchratings.com




S&P: School’s Back In Session And Some U.S. K-12 Public Districts Won’t Make The Grade

Key Takeaways

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11-Sep-2025 | 14:29 EDT




S&P: U.S. Social Housing Providers Chart A Course Through A Shifting Funding Landscape

Key Takeaways

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09-Sep-2025 | 11:54 EDT




S&P U.S. Public Finance Rating Activity Brief: August 2025

In this report we present rating actions at the debt type level (e.g., general obligation, sales tax, parking revenue, etc.) rather than at the issuer level. Therefore, an issuer may have multiple rating actions associated with it in different sectors in the tables and charts. Because we present the rating actions at the debt level, the metrics presented may not be comparable to other research published by S&P Global Ratings or by other S&P Global divisions.

This report does not constitute a rating action.

Key Takeaways

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12-Sep-2025 | 13:55 EDT




S&P: U.S. Local Government Pension Funding Improved In Fiscal 2024, Helping To Buoy Credit Ratings

Key Takeaways

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16-Sep-2025 | 11:09 EDT




Fitch U.S. States Ratings and Analyst Coverage List.

U.S. States’ credit ratings as of September 12, 2025, show stable outlooks for most states, with AAA ratings for Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Minnesota, Missouri, North Carolina, Ohio, South Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia. Recent rating actions include Alaska upgraded to AA- from A+, Connecticut upgraded to AA from AA-, Maine upgraded to AA+ from AA, and Rhode Island upgraded to AA+ from AA.

Access Report

Fri 12 Sep, 2025 – 1:40 PM ET




Public Finance and the Fintech Frenzy.

Innovators, investors and practitioners are on the hunt for fruitful applications of blockchain and other evolving financial technology. Undoubtedly some of their ambitions will involve government finance. Which ones might actually pan out?

When bitcoin ignited the cryptocurrency craze back in 2009, most investors and public officials had never heard of the blockchain technology that underlies it, or they knew just enough about it to believe it could soon be the next Internet in terms of its impact. For now, artificial intelligence has displaced the blockchain and “smart cities” as the flavor of the year on Wall Street and in public management, with its potential to enhance operational productivity and even the policymaking process of budget-cutting.

But as blockchain and other forms of advanced financial technology — “fintech” in industry argot — evolve, they are already making inroads into public finance. The challenge is to separate the noise from the signal. More importantly, public officials must also be watchful for those nasty laws of unintended consequences. Technology can be wonderful in driving improvements in public services and financial efficiencies, but its proponents often have a blind eye to unpredictable negative outcomes.

That warrants a closer look at the cutting edge of governmental fintech. It all began on the crypto front, as speculators bid up the prices of numerous cryptocurrencies. This infatuation has blossomed to almost-mania levels. Meanwhile, the allure of stablecoins, tokens, and permanent financial and property ledgers all residing on blockchain systems keeps feeding the imaginations of private investors and various public officials alike.

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governing.com

OPINION | September 16, 2025 • Girard Miller




How to Scale Up AI in Government.

Adoption of the technology remains fragmented across states and localities. Getting the most out of it requires proactive steps.

State and local governments are experimenting with artificial intelligence but lack systematic approaches to scale these efforts effectively and integrate AI into government operations. Instead, efforts have been piecemeal and slow, leaving many practitioners struggling to keep up with the ever-evolving uses of AI for transforming governance and policy implementation.

While some state and local governments are leading in implementing the technology, AI adoption remains fragmented. Last year, some 150 state bills were considered relating to the government use of AI, governors in 10 states issued executive orders supporting the study of AI for use in government operations, and 10 legislatures tasked agencies with capturing comprehensive inventories.

Taking advantage of the opportunity presented by AI is critical as decision-makers face an increasing slate of challenging implementation problems and as technology quickly evolves and develops new capabilities. The use of AI is not without risks. Developing and adapting the necessary checks and guidance is critical but can be challenging for such dynamic technologies. Shifting from seeing AI as merely a technical capability to considering what AI technology should be asked to do can help state and local governments think more creatively and strategically. Here are some of the benefits governments are already exploring:

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governing.com

OPINION | September 11, 2025 • Joie Acosta and Sara Hughes, RAND




3 Top Priorities for the Surface Transportation Reauthorization Bill.

Road pricing, toll financing of major infrastructure, and devolution of some functions should be part of the transportation bill.

As director of transportation policy for Reason Foundation, I’ve been writing this monthly column in Public Works Financing for more than 25 years. For readers who don’t know much about Reason, you can get some perspective by perusing our website. We are a nonprofit public policy organization with divisions focused on journalism and policy research. Reason is based on the belief in free minds and free markets, and makes the case for limited government, individual liberty, and the rule of law.

Transportation is one of many research areas we engage in. Among Reason’s transportation principles are the user-pays/user-benefits principle, market pricing, federalism (where each level of government is responsible for its transportation infrastructure and operations), and the idea that benefits should exceed costs, wherever possible. This leads to Reason supporting road pricing, toll financing of major infrastructure, public-private partnerships (P3s), and devolution of some functions from higher to lower levels of government.

In anticipation of reauthorization of the federal surface transportation program in 2026, our transportation team has developed a set of eight policy recommendations, which are posted on our website. Not all of the principles are relevant to the focus of this newsletter, so I will summarize three of the most notable for this audience here, and another one next month.

Continue reading.

reason.org

by Robert Poole
Director of Transportation Policy

September 10, 2025






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