• Former President Donald Trump has been re-elected, with the Republican Party securing control of the U.S. Senate and aiming to gain control of the House. A “Red Wave” is highly possible, which could have significant economic, policy and municipal market implications.
• Municipal bonds have become increasingly attractive investments, with tax-exempt yields reaching generationally appealing levels, again. Despite uncertainties, a lower interest rate environment is still anticipated over the next six to twelve months.
• Tax policy will be a major focus in 2025, with potentially an even stronger threat to the municipal bond tax exemption compared to 2017, if a “Red Wave” in fact occurs.

Read the full article

Read more Municipal Commentary