With ongoing geopolitical turmoil, a hazy outlook for the U.S. economy and concerns over federal legislative and regulatory policymaking, muni market participants still have concerns over market volatility, interest rate risk and muni bond volume, according to the new Bond Buyer Predictions report.
After two volatile years in the market and a dearth of new muni bond issuance, market participants are cautious with 2024 expectations, but many see green shoots for the industry, according to the survey responses highlighted in the report. Issuance levels may not rebound as strongly as most in the industry would prefer, but issuers should begin to bring more bonds to market as rates stabilize, refunding opportunities arise and a better picture of the overall economy comes into focus.