Skip to main content
TOOLS
Login to access your documents and resources.
Welcome to Nuveen
Select your preferred site so we can tailor your experience.
Select Region...
  • Americas
  • Asia Pacific
  • Europe, Middle East, Africa
location select
Select Location...
  • Canada
  • Latin America
  • United States
  • Australia
  • Hong Kong
  • Japan
  • Mainland China
  • Malaysia
  • New Zealand
  • Singapore
  • South Korea
  • Taiwan
  • Thailand
  • Other
  • Abu Dhabi Global Market (ADGM)
  • Austria
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Spain
  • Sweden
  • Switzerland
  • United Kingdom
  • Other
location select
Institutional Investor
  • Institutional Investor
  • Individual Investor
  • Financial Professional
  • Global Cities REIT (GCREIT)
  • Green Capital
  • Private Capital Income Fund (PCAP)
location select
This site has been created for exclusive use by institutional investors only and does not take into account the investment objectives, financial situation or specific needs of any individual investor. Information from this site should not be the sole basis for any investment decision.
Privacy notice Cookie policy, terms of use
Accept to continue
Municipal Bonds

Stable credit, smart choices: Muni bonds adapt and remain strong

Red Spanish tile
13 Jan 2025  
Download PDF
Receive future insights

2025 municipal credit outlook

Nuveen has a favorable view of municipal credit in 2025. We support investors’ confidence in generating stable income from this public purpose asset class that finances essential infrastructure in the U.S. We base this strong conviction on five key credit dynamics that span across sectors.  

Five key municipal credit dynamics

  • Municipal bonds finance essential infrastructure projects across the U.S. at the local level. These bonds are secured by taxes or dedicated revenue streams, and they are backed by a strong security pledge. 
  • Reserve levels for state and local governments remain at all-time highs coming out of the pandemic, and leaders have budgeted conservatively for more normalized future revenues. 
  • Republican control in Washington should not materially affect most municipal issuers, though some sectors such as health care, education and utilities may experience more impacts. 
  • Have and have-not stratification persists in certain sectors such as higher education and health care, requiring discerning credit research to identify the best opportunities. 
  • Real estate remains compelling when deals are structured effectively; spotlight on strong collateral coverage and shorter development timelines.

Download our full 2025 muni bond credit outlook

Go deeper
 

 

Related articles
Rows of stadium seats
Municipal Bonds Game changer: Stadium financing trends are evolving
Stadium financing using municipal bonds provides long-term, high-grade investments for investors.
Daniel J. Close, Margot A. Kleinman
03 Feb 2025
A hiker ascends a mountainside trail
Fixed income Global fixed income outlook 2025: Setting the pace
Learn what factors are at play across fixed income sectors in Nuveen’s 2025 fixed income outlook.
Anders Persson, Daniel J. Close
13 Dec 2024
sun rays on walk way
Municipal Bonds Time to shine: Municipal bonds are coming into favor
Municipal yields are set to end the year higher than where they started, and we believe muni bonds continue to be a compelling asset class that offers investors attractive taxable-equivalent yield.
13 Dec 2024
Contact us
London skyline
London
small-phone-icon
+44 20 3727 8000
201 Bishopsgate, London, United Kingdom
Footer Arc Background

Discover

Our Company

The information contained on this website is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. YOUR CAPITAL IS AT RISK. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. 

Products, services, or strategies shown may not be available in certain jurisdictions and/or to certain investors. Recipients should inform themselves about and observe any applicable legal requirements. This material does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction in which such solicitation is unlawful or to any person to whom it is unlawful to make such an offer. Any funds described herein are not for sale in the US or to US persons and are available under the conditions of the relevant offering document(s). If you are a US citizen or resident, please visit our website for US Financial Professionals or US Institutional Investors. Nuveen provides a range of products including investment advisory services, strategies, and expertise through its independent investment affiliates. Securities are offered through Nuveen Securities, LLC.

© 2025 Nuveen, LLC. All rights reserved.

4108395-0626
Back to Top