Takeaways by Bloomberg AI
- Pat Haskell expects investment-grade muni debt to deliver “mid- to upper-single-digit returns” for investors, while the high-yield segment of the market will could earn “high single digits to low double digits”.
- Haskell noted that “consecutive years of underperformance are rare” and typically only occur when fundamentals are weaker, which is not the case for munis, with credit quality for local and state governments being “sound”.
- His team forecasts annual issuance will post another record year, with their estimate hovering around $575 billion, and Haskell is worried about the school sector, calling public school districts “the most challenged tax-backed sector” due to enrollment declines and rising operating costs.
Bloomberg Markets
By Erin Hudson
February 23, 2026