Insights

The municipal market enters 2026 with strong but fading credit quality.

Fixed-income market participants often quote the term “yield,” but the word’s context could be misunderstood because various types of yield exist and each is calculated differently.

California’s fiscal picture remains strong, but its heavy reliance on income taxes tied to capital markets means the state could face unique risks if the AI boom reverses.

Today’s investors have access to a wide variety of investment vehicles, often utilizing multiple structures within the same portfolio.

In October 2025, the Federal Open Market Committee cut interest rates by 25bps to a range of 3.75 to 4.00 percent and announced an end to quantitative tightening in December.

As increasingly severe natural disasters threaten more regions of the U.S., Breckinridge is enhancing hurricane, flood, and wildfire risk monitoring to better inform municipal bond investors.

In our view, a credit rating is a measure of financial robustness and a proxy for quality, reflecting a firm’s proven results and history of prudent capital deployment.

The Treasury yield curve bull flattened in September, with the 10-year yield falling by eight basis points.