Markets

The two issuers that defaulted suffered from pre-existing conditions, according to Moody's analysts.

The Metropolitan Pier and Exposition Authority and the Illinois Sports Facilities Authority are heading into the bond market, buoyed by state rating upgrades.

Most participants expect better performance for munis in the near-term. Longer-term, a lot depends on rates, COVID and other outside factors, such as infrastructure.

Alan Rubin, principal, Blank Rome Government Relations

While municipals hit the pause button Friday, the movement in yields in the first week of July marked the largest one-week decline in 2021.

The public transit agenices are benefitting from sales taxes that fared better than expected through the pandemic and the state's stronger fiscal footing

Moody's Investors Service upgraded the county — home to Detroit — A3 from Baa1 while also elevating its rating outlook to positive.

S&P followed Moody's in raising Illinois' general obligation rating, moving it to BBB as the state's fiscal picture brightens.

Fund inflows are a demand component unlikely to slow during the heavy reinvestment season, keeping the yield environment squarely in issuers' favor.

The Fitch Ratings upgrade applies only to GO debt — the city's issuer default rating remains AA-plus. The GOs benefit from California’s 2016 statutory lien law.