Market Insights

• NY Mayoral front runner Zohran Mamdani’s pledge to fund free childcare and bus rides by taxing the rich faces steep odds in Albany NY. But tax hikes may be coming for New Yorkers anyway, regardless of who wins.

As we have discussed, MUNIs for September finished strong. Many are calling for the balance of the year to remain firm because most of the record surge in supply is beginning to dry up.

We have been discussing Charter Schools for quite some time regarding the credit quality of the underlying.  Bondholders who own MUNI debt sold for a TX charter school did not receive their October coupon payment after the school closed its doors.  Reve Preparatory...

This is a busy week for US debt issuance as the Treasury auctions off 3-, 10- & 30-year bonds and a heavy load of short-term bills.

As we know, the FED held rates steady on 7/30, Powell said interest rates are in the right place to manage continued uncertainty around tariffs and inflation tampering expectations for a rate cut in September.

Columbia reached a landmark deal with the Trump administration to restore federal funding for research, easing a crisis that has rattled the school’s faculty and undermined its leadership.

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.