JPMorgan’s Muni SMAs Hit $1.6T While $775M Sable Loan Faces Weak Demand
JPM•JPM•JPM•JPM•JPMorgan’s separately managed muni portfolios rose 7% in 2025 to $1.6 trillion, capturing 32% of all outstanding municipal bonds and surpassing traditional insurers and mutual funds. Its $775 million term loan for Sable Offshore at a 15% fixed rate remains undersubscribed after deadline extensions, highlighting softer leveraged-loan demand.
JPMorgan reported a 7% increase in separately managed municipal bond portfolios last year, lifting assets under management to $1.6 trillion. These SMAs now hold roughly 32% of all outstanding municipal debt, overtaking insurers, banks and mutual funds, with over 4,100 accounts managing under $500 million apiece.
The bank’s $775 million term loan backing Sable Offshore, offered at a 15% fixed rate and due to refinance Exxon’s maturing debt, has attracted weaker investor commitments and required multiple deadline extensions. Legal disputes over drilling rights in California and broader leveraged-loan market caution have contributed to the subscription shortfall.
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