David L. Dubrow

Just as the economy could become topsy turvy, so could the municipal market.

Major headwinds for the muni market include climate change, growing federal debt, shrinkage of the workforce, the impact of remote work, cybersecurity attacks, and political polarization. And they are poised to be costly for states and municipalities.

Rising interest rates resulting in economic growth is counter-intuitive, counter-historical, and counter to conventional economic theory. Munis have been largely impacted.

With limited support from the federal government, numerous cities would be able to pursue projects that improve their communities without sacrificing their budgets to debt service.

The bond market is not an inherently racist market but, it does not exist in isolation from society at large. As a result, it has acted against the financial interests of municipalities whose residents are predominantly Black. 

Properly designed public banks would be safer than private banks while promoting economic growth.

Municipal market participants need to be vigilant in monitoring liquidity and the impact of growing inflation.

Most significantly, sectors of the municipal market that were stressed prior to the pandemic due to underlying long-term trends will face significant challenges.