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10th November 2025

Municipal market update

So far in 2025, US states and local governments have borrowed over $500 billion in the municipal market, a record amount. Visible supply begins the week at $8.9 billion, well below the year’s average of $14.6 billion. On the plus side, overall demand remains strong with Lipper reporting $1.3 billion in in lows and SMA lows healthy. Current ratios indicate that demand remains strong, but the lack of economic data makes it challenging to assess the actual strength of the market. Flight capacity was cut by 10% across 40 of the largest airports in the nation, just another direct effect caused by the shutdown.

The SIFMA Municipal Swap Index reset to 2.68%, down 54 basis points from the previous week's 3.22%.

In other news, the City of Chicago had its credit outlook lowered by one notch last week due to the City's ongoing pension issue. Speaking of big cities, New York is in the spotlight after newly elected mayor Zohran Mamdani promised to make the public bus system of the MTA completely free.

Approximately $9.7 billion of municipal bonds are expected to price this week. A relatively average week even with the market closed on Tuesday the 11th due to a market holiday (Veterans Day). Cabrera will be serving as Co-Senior Manager on the $1,595.985 million City of Chicago – Chicago O’Hare International Airport transaction.

The week’s largest transactions include the following:

  • $1.596 billion City of Chicago - Chicago O'Hare International Airport, General Airport Senior Lien Revenue Bonds, Series 2025EFG (NR/A+/A+/A+)

  • $975.915 million Miami Dade County, Florida, Water and Sewer System Revenue Bonds, Series 2025AB (Aa3/AA/AA-/AA)

  • $967.010 million Municipal Improvement Corporation of Los Angeles, Lease Revenue Bonds, Series 2025AB (Los Angeles Convention Center) (NR/A+/AA/NR) (Cabrera Co-Manager)

  • $950.000 million Black Belt Energy Gas District, Gas Project Revenue Bonds, 2025 Series G (A2/NR/NR/NR)

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Market Insights

17th November 2025

Municipal market update

The municipal market held steady last week with MMD unchanged despite a light new issue calendar last week met with uneven demand. Lipper reported steady fund inflows at $405 million with a slowing primary calendar and upcoming November and December redemption flows, providing a favorable backdrop.

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