Investment Trends - Municipal bond ETFs attracted over twice the cash compared to traditional mutual funds in the same asset class this year [1] - This highlights the increasing adoption of ETFs as an investment vehicle within the municipal bond space [1]

Market Dynamics - Municipal bonds (munis) have underperformed year-to-date due to significant new issue supply and tepid demand, with investors holding cash or cash equivalents [2] - A potential rate cut in September could drive more investment into the muni asset class [2] - US banks have cut back on municipal bond exposure to the lowest since the financial crisis [2] - Individual investors, particularly in higher tax brackets, are key to municipal bond demand but have been restrained by financial market volatility and inflation uncertainty [3] Yield and Returns - High-quality, longer-term municipal bonds can yield 5% or higher on a tax-free basis, equivalent to around 7-75% taxable [4] - Higher-yielding municipal bonds offer 6-7%, equivalent to over 10% taxable [5] - The issuance side is long on the yield curve, offering more yield for each incremental year, which bodes well for returns in the second half of the year [4] Federal Reserve (FED) Impact - The Federal Reserve's dovish tilt, acknowledging tariff implications and potential labor market weakness, could benefit municipal bonds [7] - Municipal bonds could be a major beneficiary of the dovish tilt, as they have lagged behind equities, corporates, and treasury indices [8]

Solana's Vision - Solana aims to host every asset and market on a single, globally distributed state machine, synchronized at the speed of light [2] - Solana envisions the emergence of internet capital markets [2] Market Scope - Solana targets a wide array of financial instruments, including stocks, bonds, lending, money markets, foreign exchange, commodities, derivatives, private equity, venture capital, hedge funds, real estate investment trusts, asset-backed securities, municipal bonds, treasury securities, corporate bonds, convertible bonds, preferred stocks, common stocks, options, futures, swaps, credit default swaps, mortgage-backed securities, collateralized debt obligations, exchange-traded funds, mutual funds, index funds, closed-end funds, unit investment trusts, American depositary receipts, global depositary receipts, warrants, rights offerings, initial public offerings, secondary offerings, private placements, repurchase agreements, commercial paper, certificates of deposit, banker's acceptances, Eurodollars, currency forwards, interest rate swaps, equity swaps, total return swaps, structured products, contingent convertible bonds, green bonds, Sukuk, catastrophe bonds, inflation-protected securities, zero-coupon bonds, and floating rate notes [1]

Market Trends - Municipal bonds experienced a sell-off on Tuesday [1] - New inflation data led traders to reduce expectations for a September interest-rate cut [1]