Bloomberg Surveillance · Monday, July 20, 2026
The municipal bond market is experiencing a record year for issuance, with projections suggesting 2026 will exceed 2025's record. This surge is seen in both new money issuance and refinancings across various sectors. Despite the significant supply, demand has remained impressively strong, with over $50 billion in inflows into commingled vehicles year-to-date.
“We're running about five six percent ahead of what we had last year, and as you said, a record year in twenty five. We're seeing it in new money issuance, we're seeing an increase in refinancings. We're seeing it across multiple, multiple sectors. I don't look at this as a big concern. I actually think it's probably long overdue. We have municipalities that maybe haven't been investing as much as they should have been. An infrastructure they've had other things they've had to deal with, so it's good to see us Connie finally catching up. The big question in my mind is how's demand and will it be sufficient to take out Is all.”
“It's impressively been out there so far.”
“If I think about commingled vehicles and that's mutual funds, that's ETFs, whether it's passive ETF, active ETF, they've taken in over fifty billion and inflows year to date. That's impressive. However, we still have another half a year to get through. Right, We've got some three hundred plus billion so far. When I pull the street, they're all saying the same thing. Second half is going to be heavy. So on my mind, is it going to be that stain steady demand that we've seen in the first half and if not, if it falters, then it could cause some good volatility in community space.”