Public finance

The red wave that took the presidency and the Senate — along with increased odds of a Republican victory in the House — was hanging heavily over fixed income markets Wednesday, with munis and UST yields rising up to 17 basis points, with the largest losses out long.

The University of Texas at Austin's Center on Municipal Capital Markets will provide graduate and continuing education programs, research reports, and public outreach.

"If the GOP wins the House, the specter of risk to the municipal bond tax-exemption will increase," said Edwin Oswald, a tax partner at Orrick Herrington & Sutcliffe in Washington D.C.

Voters were asked to consider at least $148.912 billion of bonds this year in 908 ballot referendums, according to data compiled by Bond Buyer.

It was still unclear early Wednesday whether Democrats would take control of the House.

"A victory for former President Trump is likely to be viewed as ushering in a more inflationary environment, whereas a win for Vice President Harris will probably be seen as closer to the status quo," said Erik Weisman, chief economist and portfolio manager at MFS Investment Management."

Many states are capping or trying to eliminate property taxes that support bond issuance.

Northern Illinois University is going to market with $62 million of certificates of participation to finance energy-saving projects affecting 50 buildings.

While this meeting is a slam dunk, the election and data makes the December meeting more of a question, some analysts said.

Issuers in Southwest states led by Texas are hoping voters will approve billions of dollars of bonds in Tuesday's election.

It is the largest measure bond measure the nation's second-biggest school district has ever put before its voters.

Investors should "brace themselves" for further volatility, as uncertainty is likely to remain, said Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities.

The upgrade affects most but not all of MEAG's outstanding bonds.

Issuance will "not completely disappear, but will adjust to its seasonal norm from the record-breaking pace of the past several months," said Barclays' Mikhail Foux.

Moody's believes Florida will sell bonds to help replenish the CAT fund this spring.

The Payson Town Council rescinded its approval for $70 million of bonds targeted by a lawsuit filed in September.

Fitch Ratings ranks the credit as AA, up from AA-minus.

The Federal Reserve began cutting rates in September. The December meeting is its last of 2024. Will the cutting continue, or will there be a pause? Doug Peta, Chief Strategist, U.S. Investment Strategy, at BCA Research, discusses the meeting and future policy.

Observers say the decision may be a credit positive for the financially struggling utility

October's "price path has created wider spreads but also brought higher yields that are now in the range where a broader audience may begin to take notice," said NewSquare Capital Senior Fixed Income Portfolio Manager Kim Olsan, noting higher taxable equivalent yields for different tenors of the yield curve.