Public finance

J.P. Morgan is scheduled to price the deal as municipal issuers confront shifting interest rates, secondary market supply, and evolving investor sentiment.

The rally has been more of a technical driver. Absolute yields and ratios, at least on the muni side, are very attractive, with the asset class becoming "oversold," said Whitney Fitts, director of municipal portfolio management at Appleton Partners.

Muni AI issuance may reach up to $11 billion in 2026, less than 2% of expected muni issuance, the firm said.

Moody's cited a weakened financial profile and increasing constraints on the authority's ability to raise rates. 

Nederland officials said they are still pursuing the issuance of revenue bonds to buy the Eldora Mountain Resort, as well as funding for capital improvements.

Issuance was $55.454 billion in 784 deals, up 13.7% year-over-year from $48.754 billion across 802 transactions. This is the highest monthly total for September, according to LSEG.

Muni investors' fears for the economy and war were overpowered by their fear of missing out, said Peter Delahunt, head of the municipal bond department at StoneX.

The center provides research, training and outreach on state and local governments' public money decisions.

Leases backing many of the bonds are scheduled to expire before the debt is fully repaid, Moody's warned.

The muni market will also receive $28 billion of principal and interest set to be paid to investors Thursday, according to CreditSights.

The muni market is getting some relief from the new-issue calendar, as issuers have put deals on hold, according to Pat Luby, head of municipals and senior market municipal strategist for CreditSights.

The city delayed a $1.8 billion deal that was on the calendar this week, but the new money deal proceeds will be needed for a project tied to the 2028 Olympics.

Less supply coming to market lets "existing float get distributed," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The advent of environmental sustainability projects in the past decade has introduced a new kind of uncertainty into municipal debt offerings.

A new state law in Arizona is designed to spur the use of land-secured municipal bond financing to increase housing development and lower its costs.

The end of September, which is also the end of the fiscal quarter, is a historically volatile time, according to James Pruskowski, managing director at Hennion & Walsh. That volatility, driven by shoring up unsettled positions and balance sheets, is exacerbating yields' upward climb in both munis and Treasuries.

Workers and machines are poised to begin digging the new tube for a $16 billion rail tunnel project under New York's Hudson River.

Illinois lawmakers are hammering out legislation to raise cybersecurity protections for local water utilities, a timely effort after cyberattacks this summer.

In the new role, one of Doryan Carlton's responsibilities will be overseeing the state's bond issuances. She replaces Bill Poole.

The surge in yields has "crushed" bond prices and driven total returns well into negative territory, said CreditSights strategists.