Markets

The step is part of a larger effort to attract financial firms to St. Croix.

September saw the weakest month of total returns since 2008, according to J.P. Morgan analysts.

The drought-prone Texas city's $300 million utility system bond issue comes to market after rainfall and ongoing projects boosted water supplies.

Many investors go into the end of the year trying to catch up on tax-loss harvesting, but some analysts say market participants should be doing this year-round.

J.P. Morgan is scheduled to price the deal as municipal issuers confront shifting interest rates, secondary market supply, and evolving investor sentiment.

The rally has been more of a technical driver. Absolute yields and ratios, at least on the muni side, are very attractive, with the asset class becoming "oversold," said Whitney Fitts, director of municipal portfolio management at Appleton Partners.

Muni AI issuance may reach up to $11 billion in 2026, less than 2% of expected muni issuance, the firm said.

Issuance was $55.454 billion in 784 deals, up 13.7% year-over-year from $48.754 billion across 802 transactions. This is the highest monthly total for September, according to LSEG.

Muni investors' fears for the economy and war were overpowered by their fear of missing out, said Peter Delahunt, head of the municipal bond department at StoneX.