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Louisiana State Treasurer John Fleming indicated he is open to compromise on the nature of state oversight for the city, which may have trouble making payroll.
While the market navigates a surge in supply, another focus area has become elections and their potential to shift market demand, as several regional election results will likely garner greater attention over the next few months, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.
City and state law mean it's unlikely that Mamdani will be able to enact the parts of his agenda that would have major impacts on the city's credit.
An uncertain financial future partially due to federal government downsizing is compounding with nearly $6 billion of unfunded capital needs that will require Washington D.C. to lean on asset management and its strong credit rating to overcome the challenges.
The ruling comes as the municipal bond market closely watches the administration's effort to control federal infrastructure spending.