Buy side

Market Intelligence analyst Jeff Lipton, in the second installment of his three-part 2026 outlook series, maps out quality-centric portfolio shifts, barbell and long-end strategies, and sector tilts across hospitals, higher education and housing as record supply and net inflows drive the muni market.

In the first of his three-part 2026 municipal outlook series, Market Intelligence analyst Jeff Lipton forecasts for sub-5% returns, continued demand, possibly more curve steepening as the Fed eases slowly, the economy skirts recession, and AI, tariffs and midterm politics potentially reshaping risks across public finance sectors.

Unless there is a massive selloff in the next two weeks, there will not be a major spike in market participants using tax-loss harvesting through year-end, said Ben Barber, director of municipal bonds at Franklin Templeton.

The company has the option to defer interest payments three times without triggering a formal default.

AllianceBernstein hired four municipal credit special situations analysts based in its Dallas office.

Concerns about Brightline have dragged down performance in the high yield sector this year.

Fortress Investment Group bought the property in 2021 after it was largely destroyed by Hurricanes Irma and Maria and financed a major renovation that featured reinforcement standards designed to protect against a category 5 hurricane.

The new debt is a "bridge loan" until the company can raise fresh financing, a bondholder said.

Bonds have traded up since the company last week announced a tentative bondholder deal and project update and financing details.

The deal would give the company time to seek additional equity, debt and federal funds.

Flows into high-yield muni mutual funds had slowed over the past several weeks, and the past two weeks have seen outflows.

Rural providers face $137 billion in federal Medicaid cuts from the One Big Beautiful Bill Act.

Multi-layered state oversight, strict fiscal safeguards and durable revenue pledges support New York City GO and TFA bonds even as investors brace for policy shifts under mayor-elect Zohran Mamdani.

Loren McDougall will help Birch Creek launch high-yield-focused separately managed accounts.

Municipal bond insurance volume grew 17.7% year-over-year in the first three quarters of 2025, according to LSEG, outpacing the municipal market as a whole.

Meanwhile, the Brightline West train project has floated a possible debt exchange ahead of its own mandatory redemption later this month.

As climate and cybersecurity risks intensify, Jeff Lipton argues it's time for the legal community to lead a new era of municipal disclosure — tightening language, clarifying exposures, and ensuring investor confidence.

The Los Angeles Department of Water and Power will sell $977.6 million of water revenue bonds as it grapples with the impacts of January's devastating wildfire.