Southeast

The bonds will fund infrastructure in one of 21 community development districts that have built the age-restricted 55-and-up Villages to more than 76,000 homes.

The Investment Company Institute reported more than $1.3 billion of inflows into muni mutual funds. The last time inflows topped $1 billion, per ICI data, was for the week ending Feb. 7. LSEG Lipper has reported weeks with $1 billion plus inflows on July 31 and May 8.

Agency cites growing debt levels and midrange demographic and economic factors.

The bonds, expected to be rated Aa2 by Moody's, will will be among the earliest general obligation bonds sold by Kentucky school districts since the state passed a law in April allowing such debt by school districts.

The region's municipal bond volume grew by 42.4%, outpacing the nationwide 32% increase in a first-half marked by gas prepay deals and Brightline's big sale.

"Investor reception will remain the ultimate arbiter of muni performance and … the current state of the tax-exempt space to be well-positioned, even though munis are likely to continue to underperform USTs," said Jeff Lipton, a research analyst and market strategist.

Environmental, social and governance issues are a ripe debate among Republican states who oppose federal efforts they say are overly political.

The state plans to price the bonds in early October.

Long-term liabilities have gone down and revenues have gone up, Fitch said.

The state has selected a stretch of Interstate 24 between Nashville and Murfreesboro to be its first "Choice Lane," an optional toll lane to bypass congestion.