Finance

SWBC's Chris Brigati said he doesn't expect the geopolitical tensions to cause similar losses to muni yields unless oil prices or Treasury yields move significantly higher.

The ratings agency cited the school's compressed operating margins in recent years.

With continued geopolitical tensions and surging oil prices, things could change on a dime, said Sweta Singh, founding partner and portfolio manager at City Different Investments.

Munis were quiet on Friday after an eventful April.

Moody's Ratings revised Missouri's outlook to negative from stable, citing a large structural deficit that will push fund balances below its Aaa-rated peers.

Investors are digesting developments in the Middle East and the Fed's decision not to cut rates, according to FHN Financial's Ajay Thomas.

The average muni bond trade size fell below $204,000 in the first quarter, down 5% from 2025, according to Municipal Securities Rulemaking Board data.

Saint Michael's College was downgraded to B3 from B1, as Moody's cited growing expenses and lower revenues.

"The market is starting to feel a little bit on the heavy side," said Jamie Iselin, head of municipal fixed income at Neuberger Berman. "The Treasury market has been leaking higher as, I think, people are getting concerned that the conflict in the Middle East is going to [last] longer."

Moody's Ratings downgraded Northern Illinois University's issuer and revenue bond ratings to Ba1 from Baa3.

Muni yields increased "in sympathy with the Treasury market," according to Charles Schwab's Cooper Howard.

Fitch, Moody's, and S&P were sent a letter from 23 GOP state attorneys general over the use of ESG factors related to fossil fuel in negative rating actions.

All sectors of the muni market posted gains in April, Kim Olsan wrote, exemplifying the market's better-than-expected resilience.

Fitch Ratings on Monday echoed a prior move by Moody's Ratings to revise the state's outlook to negative.

"What the market's really trying to figure out is what that Warsh regime is going to mean," said Tom Kozlik of HilltopSecurities. "Folks are really trying to position their mindsets, position their portfolios."

"Investors typically start positioning for heavy summer redemptions in summer, so the market typically performs well enough through the first half of June and we do not believe that this year will be any different," Barclays strategists said.

Jay Leno, longtime comedian, TV host and car enthusiast, promoted an upcoming municipal bond deal in a video for Hollywood Burbank Airport.

It was another "topsy-turvy day" for munis, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital. Munis have been weaker on the front end for a few days, leading to a slight inversion of the curve, starting around the 2028 maturities, Olsan said.

The state Supreme Court's ruling comes in a case that targeted the 2022 issuance of nearly $687 million of ratepayer-backed bonds for a utility company.

Moody's Ratings announced a stable rating outlook for Washington, D.C., good news for a city reeling from federal job cuts and gearing up for a mayoral race.