• Municipal bond credit quality remains robust despite the conclusion of federal stimulus programs. Key indicators—including housing market performance, state reserve levels, credit ratings, employment trends, and issuance activity—continue to reflect strength and stability as the sector transitions from the Golden Age of Public Finance into the Post-Golden Age Realignment.
• Strong housing markets and near-record state reserves remain foundational to fiscal health, offering reliable revenue streams and flexibility for structural adjustments as government credit conditions normalize.
• Municipal credit upgrades continue to outpace downgrades, driven by prudent deployment of federal aid, conservative budgeting practices, and improved pension funding. These factors highlight the sector’s resilience as it enters the Post-Golden Age Realignment.
• State and local employment growth and record-setting bond issuance are often underappreciated indicators of fiscal strength. They reflect government confidence, ongoing infrastructure investment, and sustained investor demand in a municipal market that remains attractive.

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