Core Insights - Municipal bonds are gaining attention as a conservative asset class amid rising geopolitical tensions, making ETFs like the ALPS Intermediate Municipal Bond ETF (MNBD) appealing to risk-off investors [1] Municipal Bond Market Activity - Municipal bond issuance reached $498 billion in 2024 and exceeded $580 billion in 2025, primarily consisting of new issues rather than refinancing [1] - The demand for municipal bonds remains strong, driven by upcoming midterm elections in 2026, prompting state and local governments to seek funding for various projects [1] - Significant increases in bond issuance from 2023 to 2025 were noted in several categories: education bonds by 58%, transportation bonds by 66%, electric power issues by 87%, and health-care issues by 184% [1] - Experts predict that municipal bond issuance could reach between $550 billion to $600 billion this year, supported by strong demand and the need for capital [1] - Governments are expected to continue facing high demand for new infrastructure to address affordable housing, electricity needs, and climate risks [1]