UBS On-Air: Market Moves Municipal Brief: New York City - Looking ahead
Dec 3, 2025
Jeannine Lennon and Ted Galgano, both Municipal Strategists at UBS, dive deep into New York City's fiscal future following Zohran Mamdani's mayoral victory. They discuss the affirmed risk categories for the city's debt, highlighting the impact of political tensions on market spreads. Jeannine emphasizes historical safeguards that maintain credit quality, while Ted outlines key transition appointments to watch. Their insights equip investors with critical knowledge as they navigate the evolving landscape of municipal finance.
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Avoid Knee‑Jerk Selling On Headlines
- Do not sell NYC holdings solely due to election headlines if you can tolerate headline-driven volatility.
- Monitor developments over the next year as clarity on policy and state support emerges.
CIO Affirms NYC Credit Despite Headlines
- UBS CIO affirmed NYC debt risk categories despite headlines about the mayor-elect's win.
- Financial guardrails and oversight keep spreads mostly stable so far.
Why Spreads Only Marginally Widened
- Spread widening is modest because New York benefits from unique financial guardrails and oversight.
- Investors are pausing given political uncertainty and heavy municipal supply this year.