Buy side

David Brownstein, who helped Jefferson County, Alabama, and Detroit return to market after bankruptcy, has opened a new firm that is advising the Oversight Board on its plan of adjustment for PREPA.

Some participants on the Street estimate that SMAs hold as much as $1.5 trillion of munis while others peg it closer to $1 trillion to $1.3 trillion.

Chad Wildman, executive director, Quantitative Strategies at FMSbonds, and Matthew Smith, founder and CEO of Spline Data, discuss how automation has repositioned the muni market and where participants can find value by using technology tools. Lynne Funk hosts. (45 minutes)

A congressional hearing last week underscored the risk of havoc-based cyberattacks, particularly from China, said Hilltop's Tom Kozlik.

Interest rates and federal elections hang heavy over the industry and municipal analysts believe certain muni sectors or subsectors will experience credit deterioration.

As ridership remains low, investors are closely watching for new funding streams and credits like the MTA's planned congestion tax-backed bonds.

The top two municipal bond insurers wrapped $31.845 billion in 2023, up 10.4% from the $28.847 billion of deals in 2022, according to Refinitiv data.

The muni market finances the "fabric of our nation, and now, because of Citi's exit, the cost of financing for state and local governments is going to go up," a sell-side source said.

Buying technology can be a relatively safe bet, especially if it comes from an established brand, and it comes with support, maintenance and expertise from vendors. Internally building it allows for exclusivity and a potential competitive advantage.

The firm plans to launch a pair of high-yield muni funds in January.