NMCO - Q2 2021 Credit Commentary - And The Recovery Continues

• Many municipal negative sector outlooks assigned during the pandemic were revised back to stable during the first and second quarters.
• As mentioned earlier, the states of CT, IL, and NJ have been improving, albeit from low levels. They have put in place plans to increase the funding of their pension systems and have been sticking to them.
• Recently, there has been huge demand for tax-exempt municipal bonds. The predominant factor driving demand is the expectation of higher future income tax rates at both the federal and state levels.

For further details see: