Markets

Despite the outperformance this week, and while the asset class had "a stellar December, which rounded out a very solid year," Barclays PLC strategists said the high-grade muni market has become "quite rich."

Labor costs that continue to squeeze operating margins remain the biggest obstacle for the nonprofit healthcare sector.

The muni market enters this year from a relative position of strength, said Jeff Lipton, managing director and head of municipal research and strategy at Oppenheimer.

Three districts are under Washington's state fiscal oversight and the largest, Marysville School District, took a multi-notch Moody's bond rating downgrade.

This year has favorable potential for 1Q activity, noting an unusually large scheduled reinvestment potential in January and February, including $19 billion of maturities plus calls in January and $24.9 billion in February, noted MMA's Matt Fabian.

North Las Vegas was upgraded to A-minus from BBB-plus by Fitch Ratings, which kept its positive outlook.

"Buyers went all in on revenue-sector names, with that category earning 6.8% and beating out GOs by 127 basis points," said FHN Financial's Kim Olsan. "Sub-sectors within the revenue category pointed to a risk-on theme into year-end." 

This performance is a dramatic rebound from 2022's losses.

Medford, Oregon-based Asante Health enters 2024 with negative outlooks from Fitch and S&P as it works to complete expansion projects amid industry headwinds.

The muni market saw $379.992 billion of debt issued in 2023, only $11.076 billion less than the lackluster $391.068 billion seen in 2022.