Bank of America Sees Record $520 Billion of Muni Sales in 2025

Strategists at the municipal-bond market’s biggest underwriter are forecasting a very busy year for state and local government debt bankers.

Bank of America Corp analysts led by Yingchen Li and Ian Rogowanticipate state and local governments will sell $520 billion of debt in 2025, a record sum, the group said in a research note on Friday. The strategists also revised their forecast for this year to $460 billion from $400 billion.

“Positive factors for munis remain in place,” they wrote, citing “well-controlled muni/Treasury ratios and compressing muni credit spreads.”

This is despite anticipated volatility in the market due to ...