Market Insights

As investors brace for mounting financial strains on hospitals and healthcare systems amid estimates that legislation could push millions of Americans off their health insurance.

• The tragedy that hit our state last week ranks as one of the deadliest and costliest flash floods in US history. From 1980 through last year, flooding has killed hundreds of people nationwide and inflicted at least $203 billion in losses.

• As we have mentioned in previous notes, we do not expect a rate cut this month by the FED. Beyond eliminating bets or a FED cut this month, traders are also wavering on the prospect of a reduction in September.

As we have reported, MUNI sales are up ~21% this year compared to last year’s volume. State and local governments have sold $153 billion in new debt in the second quarter, already the largest ever, with just four trading days remaining in the period.

• Federal Reserve officials left interest rates unchanged on 6/18/25 and continued to pencil in two rate cuts for 2025, citing high uncertainty over the economic outlook that has since diminished.

As we reported on June 10, Blackrock indicated that it is time to buy MUNI bonds, as supply is ample and prices are favorable ahead of the summer.

The Governor of Illinois reported plans to sign a $55.1 billion budget for 2026, which generates revenue from higher taxes on smokers, gamblers, and large multi-state businesses while pulling delinquent taxes into state coffers through a six-week amnesty program.

The NYC congestion toll pricing raised $215.7 million in the program’s first four months. Since January 5, most motorists have to pay $9 during peak hours to enter south of 60th Street in Manhattan.

• As we saw on May 21, long-term borrowing costs for all major economies are surging as investors question the government’s ability to cover massive budget deficits. The 30-year bond yields in the US and Japan reached multi-year highs.

Maryland’s credit rating was downgraded one level to Aa1 from Aaa by Moodys. This downgrade was a direct result of its exposure to shifting federal policies, according to a May 14 report.