Buy side

New research from The Bond Buyer finds the federal policy environment once again threatens the tax-exempt status for municipal bonds.

Brightline Florida's financial statements for 2024 and 2025 by Ernst & Young LLP, filed Thursday on the Electronic Municipal Market Access website, warn that the company lacks the cash to cover pending debt payments

"We do good work," said Mike LaPierre, president of GPM Municipal Advisors, which acts as advisor and staff to the Public Finance Authority and the California Community Housing Agency.

Market Intelligence analyst Jeff Lipton argues MRBs can add value to conservative muni sleeves, but warns that extraordinary redemption features, prepayment behavior, loan origination performance and liquidity constraints can make redemption analysis just as important as credit analysis.

Last year, 23 active ETFs launched along with nine passive ones. While the first quarter of the year bucks that trend as one active ETF launched compared to three passive ones, things could change the rest of the year, analysts say.

Researchers examined more than 580,000 municipal bond issues and say the data shows communities with higher wildfire risk pay higher interest rates.

Market Intelligence analyst Jeff Lipton revisits the taxable muni market's expansion from the 1986 tax reforms through the BAB era, showing how call features, policy changes and rate cycles influence issuance, and why taxable munis remain a flexible tool for issuers and investors.

The PFA owns nine bond-financed credits, ranging from proton cancer therapy centers to student housing. All but one are in default.

Market Intelligence analyst Jeff Lipton warns that as ESSER-era support fades, shifting enrollment patterns, voucher expansion, tax-cut dynamics and rising costs are exposing credit stress in parts of the K-12 sector — making security selection and disclosure discipline more important in 2026 and beyond.

The risk of contagion to the rest of the high-yield market is limited, investors said.

Pricing deals on Monday, alerting investors weeks ahead of pricing, and crafting SMA-friendly structures are some of the ways dealers are promoting their deals in a flood of supply.

The sector's challenges have also impacted the overall high-yield education index.

Market Intelligence analyst Jeff Lipton looks back on a first quarter in which the municipal bond market was unexpectedly buffeted by the winds of war.

The city and United Airlines are navigating geopolitical volatility looking for an opportunity to sell the debt.

Market Intelligence analyst Jeff Lipton details some tools he finds useful to manage risk exposure, establish market trends and identify opportunities.

"The secondary infrastructure demands [of data centers] will increasingly flow through to municipal balance sheets, driving incremental issuance across multiple sectors," said J.P. Morgan strategists.

Findings from The Bond Buyer's 2026 Predictions report predict funding crises in these market sectors will be a top worry for municipal finance pros.

Some states and local governments "went on spending sprees" with pandemic funds and "got ratings upgrades that didn't have a lot to do with fiscal management," said an investor.

There is a lot of money out there, and investors seem comfortable putting it to work.

In this Market Intelligence analysis, Jeff Lipton warns that granting states access to Chapter 9 would be deeply disruptive, likely forcing muni yields higher and liquidity lower, while underscoring why states' legal protections and reserves still support strong willingness to pay.