
Record Municipal Bond Boom Fuels Public Projects and Tax-Efficient Investing
U.S. state and local governments issued a record $500 billion in municipal bonds last year to fund airports, roads and utilities, attracting a large pool of buyers drawn to tax-exempt income and yields that can compete with Treasuries; the muni market has grown to over $4 trillion, financing long-term projects while sparking warnings from economists about potential debt bubbles, credit downgrades, and climate-related risks, even as some states (e.g., Illinois) see improving credit prospects.




