The municipal bond market has entered a new phase of complexity and volatility in recent months, driven by severe weather events, federal and state budget discussions, and lingering questions about the tax-exempt status of municipal bonds. At the 2025 Morningstar Investment Conference, a panel titled "Making Money in the Muni Markets" brought together leading experts to discuss these challenges and opportunities. The panel featured Elizabeth Foos, Associate Director, Fixed Income Strategies at Morningstar Research Services LLC; David Hammer, Head of Municipal Bond Portfolio Management at PIMCO; Curtis White, Portfolio Manager, Tax Aware Fixed Income Group at J.P. Morgan; and Courtney Wolf, Portfolio Manager at Capital Group.
Also our coverage of the 2025 Ben Graham Conference, 2025 Global Alts New York and the Best Alternative Investment Fund Conferences for 2025.
2025 Morningstar Investment Conference - Elizabeth Foos, David Hammer, Curtis White, and Courtney Wolf
Market Evolution and Volatility in 2025
The first half of 2025 has seen record levels of macro volatility in the municipal market. This period coincided with April and May, traditionally a weak time for munis as investors withdraw funds to pay taxes. A significant factor contributing to this volatility was a "pull forward effect," where numerous municipal issuers, including those in healthcare, multi-family housing, and private higher education, rushed to market. They did so out of concern that they might lose the ability to issue tax-exempt debt. The last two weeks mentioned in the audio were among the top five issuance periods in the history of the municipal market, indicating a pronounced supply surge.
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