- Total GO bond sales fall 51% in 1Q when state has new governor
- About $320 billion of new long-term munis issued this year
The results of the Nov. 8 midterm elections will make waves in the $4 trillion municipal bond market, one of the most politically exposed asset classes.
With 36 governor seats up for re-election, states and localities will likely issue less debt through early 2023, which is already a typically quiet time for the market, according to Vikram Rai, the head of Citigroup Inc.’s municipal-bond strategy group.
“Issuance gets delayed slightly, issuance doesn’t go away it just gets pushed out a bit,” Rai said in an interview. “When the new administration takes over it takes them some time to get used to the office and get their act together.”
Bloomberg Markets
By Skylar Woodhouse
October 28, 2022