"The trend of heavy issuance that began last year has continued in the first half of 2025, surpassing even our rather optimistic expectations," said Barclays strategists Mikhail Foux, Grace Cen and Francisco San Emeterio.
The selloff highlights the lack of accurate pricing and credit information across the speculative-grade muni market.
Some market participants said they were sad to see EMMA Labs go.
New guidelines require local governments to receive the state's comptroller's approval before issuing debt with variable interest rates, put options, or interest rate reset options.
The $247.75 million of unrated tax-exempt bonds will finance public infrastructure and projects for an initial development on state-owned land.
So far, the financial market reaction has been limited, said Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute.
