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.