BlackRock Sees Muni Bond Openings as 2026 Issuance Tops $580 Billion
Updated
Updated · CNBC · Aug 7
BlackRock Sees Muni Bond Openings as 2026 Issuance Tops $580 Billion
1 articles · Updated · CNBC · Aug 7
Summary
$56.6 billion of new cash flowed into municipal bonds in the first half, giving the market its second-best start on record and supporting BlackRock's cautiously optimistic view for the second half.
BlackRock says investors still need to be selective, favoring high-quality, 5%-plus coupon bonds and parts of the long end around 20 to 22 years while staying neutral on duration overall.
Revenue bonds in housing and transportation stand out: the S&P Municipal Bond Housing Index yields 4.34%, and the Transportation Index 4.06%, with tax-equivalent yields reaching 7.33% and 6.86% for high earners.
That tax advantage remains the core draw for wealthy investors: a 3.5% tax-free muni bond can match a 5.45% taxable bond for someone in the 32% federal bracket plus net investment income tax.