WSJ's Take On the Week Why This JPMorgan Analyst Says Now Is the Time to Buy Municipal Bonds
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Oct 5, 2025 
Neene Jenkins, Head of Municipal Research at JPMorgan Asset Management, shares valuable insights on the municipal bond market. She discusses the surge in municipal bond issuance driven by rising construction costs and infrastructure demands. Jenkins highlights the resilience of the sector even amid potential government shutdowns and reassures listeners that a recession isn't her base case. She emphasizes the importance of cash reserves for investors and explains how federal policies are shaping the landscape for municipalities.
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Issuance, Not Defaults, Drives Recent Muni Pain
- Municipal bonds face heavy technical pressure from elevated issuance even as credits remain strong.
- Neene Jenkins says supply is high because issuers are borrowing for infrastructure and capital needs.
Now Could Be A Buying Opportunity
- Shop munis now because recent weakness created opportunity in parts of the curve.
- Neene Jenkins recommends looking for value as some long maturities became attractive after the sell-off.
Munis Fund Real Infrastructure Projects
- Issuers borrow mainly for capital projects, not ongoing cash flow needs.
- Rising labor and material costs have increased the dollar amount needed for infrastructure borrowing.