- Strategists also revised forecast for this year up by 15%
- Issuance in 2024 so far is strong rising to $409 billion
Strategists at the municipal-bond market’s biggest underwriter are forecasting a very busy year for state and local government debt bankers.
Bank of America Corp analysts led by Yingchen Li and Ian Rogow anticipate state and local governments will sell $520 billion of debt in 2025, a record sum, the group said in a research note on Friday. The strategists also revised their forecast for this year to $460 billion from $400 billion.
“Positive factors for munis remain in place,” they wrote, citing “well-controlled muni/Treasury ratios and compressing muni credit spreads.”
Bloomberg Markets
By Lily Meier
October 18, 2024