Public finance

Municipal bond issuers are on tap to sell about $6 billion of new issues in early January, but there should be plenty of money from maturing issues and interest payments to easily absorb that amount, as well as volume going forward, says Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Advocates for improving inland port infrastructure in the House and Senate are pushing bipartisan bills aimed at funneling more dollars from the Port Infrastructure Development Program to facilities on the Great Lakes as opposed to East and West coasts.

The California High Speed Rail Authority's focus has shifted to state funds and private capital.

A lawyer for the bondholders said a majority support the proposed treatment of the $61 million of outstanding bonds.

The Federal Open Market Committee meeting minutes showed the decision was closer than the vote indicated, with "a few" voters suggesting they would have supported no change at the meeting.

"The upgrade to Baa3 recognizes the city's fiscal stability under the current casino taxation format," as well as rapid debt defeasance, the rating agency said.

The Alaska IDEA's $75M notes were rated AA-plus by S&P, which cited strong financials.

The muni credit market has experienced headwinds this year, including "potential federal funding cuts, the impact of tariffs and sector-specific pressures," said Goldman Sachs strategists

Moody's Ratings upgraded the Rhode Island Airport Corporation's airport revenue bonds for Providence's T.F. Green International Airport to A3 from Baa1.

With Federal Reserve Chair Jerome Powell's term expiring, there is added uncertainty about monetary policy.

All eyes will be on the next surface transportation bill, which the House plans to unveil in early 2026.

The New York State Thruway Authority's $848 million refunding features a voluntary tender process.

The muni bond market stands at an "inflection point," said Nuveen strategists in a 2026 market outlook.

Klavan, who previously worked at Squire Patton Boggs, has represented governmental, conduit borrower, and underwriter clients on a wide range of projects.

Analyst remain positive about the economic outlook next year, although some have reservations and volatility is possible.

Monetary policy remains the key to the markets. The Federal Open Market Committee predicts one rate cut in 2026, but the panel will get a lot of data before

"A stagnant yield curve is resulting from supply having wound down and munis drawing steadiness from a likewise calm UST market," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The municipal advisor area "remains a heavy focus of both the commission's Division of Examinations as well as the Division of Enforcement," Andrew Kintzinger, counsel at Hunton Andrews Kurth, said.

Chicago's city council passed its alternative budget over the weekend. Mayor Brandon Johnson hates it, but said he would not veto it.

It was a "confusing, volatile year, and the states face growing threats in 2026 and thereafter," said Matt Fabian, president of Municipal Market Analytics.