Group 1 - Muni bonds have experienced record trading volumes in 2025, indicating strong market activity [1] - Anticipation of further rate cuts in 2026 suggests that investors may need to seek better investment opportunities for their cash positions [1] - Muni funds, such as DWS, are highlighted as potential options for investors looking for income-focused portfolios [1]

Core Insights - Muni bonds have shown recovery from a challenging start to 2025 but continue to underperform compared to other segments of the fixed income market [1] - Federal funding cuts, particularly to Medicaid, are expected to exert pressure on state budgets, with California highlighted as an example of strong revenues coupled with increasing spending risks [1] - The outlook for the muni market is discussed in detail on "Bloomberg Markets" by Columbia Threadneedle's Shannon Rinehart [1]