Insights

Entering the second half of 2026, municipal market credit is stable with some signs of sector weakness.

California’s proposed wealth tax faces significant political, legal, and administrative obstacles and is unlikely to be enacted.

Prudent investors can employ strategies to mitigate the impact of these technicals and identify the best after-tax opportunities.

As economic conditions shift and monetary policies change, we are generally seeing more divergence amongst issuers and opportunities to add value through credit selection.

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

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

Investment managers confronting challenges of a more complex and competitive municipal bond trading environment must develop, deploy and continually refine new tools and technologies.

Influences spanning government, regulatory and trade policy, market technicals and sector fundamentals shaped the municipal bond market through June 2025.