Insights

As a city’s population increases, a municipality’s credit profile can change rapidly. Population growth is typically a favorable credit factor but can introduce challenges as well.

As yields rise or fall, the pace and size of any change in one bond’s prices can be different than another bond.

The municipal bond market enters 2025 with strong but ebbing credit fundamentals, the potential for rising Municipal/Treasury ratios driven by increased issuance and weaker demand due to policy uncertainty, and tight credit spreads.

United Nations conferences conducted in 2024 continued to focus nations on the key sustainability risks presented by climate change and degradation of biodiversity around the world.

Demographic shifts, more competition in the public school arena, and state aid formulas are driving challenges.

This perspective explores this market disconnect and highlights trends that suggest a change may be in the offing.

Traditionally, investors have allocated to high-quality investment grade bonds with a goal of earning predictable income, diversifying their overall portfolio risk, and preserving capital.

Premium bonds and the math behind them continue to furrow the brows of many municipal investors.