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The Bond Purchaser’s 2025 Infrastructure Report
The Bond Purchaser’s 2025 Infrastructure Report surveyed 104 municipal finance traders and sell-side specialists, in addition to issuers and public-sector professionals, on quite a lot of subjects together with main infrastructure areas for investing, influences on financing outlooks for 2026, market fluctuations and extra.
High findings from the report
The Bond Purchaser’s unique analysis is highlighted within the interactive charts under. Mouse over every part for extra element, and click on on the chart labels to point out or disguise sections. This merchandise is a part of a collection diving into new knowledge from The Bond Purchaser, so examine again for the newest updates.
This merchandise is the tip of a collection diving into new knowledge from The Bond Purchaser. Click on the hyperlinks under to learn the earlier analysis gadgets.
A flood of pessimism
Multiple-third of respondents expressed pessimism over whether or not state and native governments would put money into resilient infrastructure, which is outlined as initiatives aimed toward mitigating extreme weather-related occasions.
Six % of execs stated they have been “very pessimistic” about investments into resilient infrastructure over the following 5 years, whereas 36% stated they have been “largely pessimistic” about investments.
Thirty-nine %, the most important group, have been “equally optimistic and pessimistic,” 16% have been “largely optimistic” and 4% have been “very optimistic” about state and native governments investing in resilient infrastructure initiatives.
Key takeaway: Multiple-third of respondents have been pessimistic about whether or not state and native governments will put money into resilient infrastructure over the following 5 years.
Stylish offers
Over the previous yr, bond offers disclosing local weather dangers in providing paperwork have reigned as the highest deal sort that respondents have labored on.
Forty-five % of execs surveyed stated they’ve labored on such offers, whereas 41% stated the alternative and 14% said that these offers aren’t relevant to their companies.
Public-private partnerships (P3) noticed a slight shift within the breakdown, as 40% stated they’ve labored on such offers during the last 12 months, in opposition to 46% who stated they haven’t. Fourteen % responded that these offers aren’t relevant to their companies.
Lastly, 30% of respondents stated they’ve labored on offers focusing on addressing resilience and adaptation; 55% stated they didn’t. The share of those that abstained for enterprise relevance causes rose barely, to fifteen%.
Key takeaway: Bond offers that disclose local weather danger have been the most well-liked for municipal finance professionals during the last yr.
Shifting tides
Over the following three years, municipal finance professionals plan to incorporate extra deal sorts of their portfolios.
Twenty-two % of respondents stated they positively plan to work on P3 offers someday inside the subsequent three years, adopted by 21% who stated it is a excessive chance and 26% who stated perhaps. Fifteen % stated they haven’t any plans to work on P3 offers, whereas a mixed 16% stated this class does not relate to their enterprise or they’re not sure.
When requested about bond offers focusing on addressing resilience and adaptation, 6% of respondents stated, “sure, positively,” 24% stated “sure, in all probability,” and 28% stated “perhaps.” Twenty-four stated they might not plan to work on resilience-addressing offers. A mixed 18% have been not sure about their agency’s route or haven’t any enterprise purpose to have interaction in these offers.
In situations the place local weather dangers are talked about in providing paperwork, 19% of respondents stated they positively plan to work on these offers someday within the subsequent three years, whereas 25% stated “sure, in all probability” and 13% stated “perhaps.” Twenty-two stated “no,” and a mixed 20% have been not sure about their agency’s route or haven’t any enterprise purpose to have interaction in these offers.
Key takeaway: Many market professionals plan to tackle new deal sorts over the following three years.
The attention of the FEMA storm
The way forward for FEMA is unsure, and a majority of municipal finance professionals are satisfied that it will not survive this present administration.
Three % of respondents stated it is a “particular certainty” that FEMA will likely be eradicated, 21% stated it is “extremely probably” and 29% said it is “considerably probably.” Twenty-seven % stated the chance of FEMA being unwound is “considerably unlikely,” whereas 16% stated “not possible” and 4% have been sure that it’ll “positively not occur.”
Understandably, the same breakdown was discovered when respondents have been surveyed about their degree of concern over the potential elimination of FEMA. Twenty-eight % have been “very involved,” 25% have been “involved,” 20% have been “a bit of involved,” and 27% have been “not involved” in any respect.
The highest three worries in regards to the potential dismantling of FEMA embrace the lack of useful resource coordination for pure disasters, at 46%, funding burden for aftermath of pure disasters shifting to state governments, with 45%, and the funding burden shifting to native governments at 43%.
Key takeaway: The chance of FEMA being dismantled has market professionals nervous about shrinking funding sources and the disaster-recovery burden that may be positioned on state and native governments.
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