Municipal bond insurance volume grew 17.7% year-over-year in the first three quarters of 2025, according to LSEG, outpacing the municipal market as a whole.
Concerns over the Texas city's future water supply after a desalination project was terminated, led to negative rating outlooks from Fitch and S&P.
Municipal water agencies are appealing to the Environmental Protection Agency about a slowdown in the Water Infrastructure Finance and Innovation Act loan program which along with bond sales, funds improvements to water and sewer infrastructure.
Federal immigration and trade policies are a likely factor in the triple-A-rated state's weak job growth and pose risks for its southern border cities' budgets.
In her first public appearance since President Trump moved to fire her from the Federal Reserve Board of Governors, Fed Gov. Lisa Cook reiterated her commitment to bringing inflation under 2% and said that the labor market remains "solid."
"Normalized supply, a supportive rate environment and favorable technicals propelled the municipal market to the best October performance [in decades]," said Robert J. Lind.
