Release Date: December 11, 2013
Contact: Liz Pierce, 212-313-1173, email@example.com
SIFMA Issues 2014 Municipal Bond
--Forecast shows $349.5 billion
in Issuance for 2014—
New York, NY, December 11, 2013—SIFMA today
released its 2014 Municipal Bond Issuance Survey. Compiled from responses
provided by large and regional municipal bond underwriters and dealers, the
report forecasts what type of activity is expected in the municipal securities
market in 2014.
Respondents expected total municipal issuance, both
short- and long-term, to reach $349.5 billion in 2014, down from $366.1 billion estimated issuance in 2013. Both short-term and long-term issuance is
expected to fall in 2014, with $40.0 billion in short-term notes expected in
2014, compared to $53.6 billion issued in 2013; and $309.5 billion in long-term
bills expected in 2014, compared with $312.5 billion issued in 2013.
“Looking ahead, we expect municipal new-issue
volume will be flat to lower in 2014,” said Michael Decker, managing director
and co-head of the Municipal Securities Group at SIFMA. “Although the overall
systemic credit quality of the municipal market is strong, state and local
issuers remain pressured by a moderate recovery, and the refunding wave has
Other highlights from the survey include:
- Projected long-term tax-exempt municipal issuance
to reach $265 billion in 2014, a 0.7 percent decline from the $266.7 billion issued
year to date in 2013;
- Projected long-term taxable municipal issuance is
expected to be $33.5 billion, a 5.7 percent decline from actual issuance in
- Long-term alternative minimum tax (AMT) issuance is
projected to rise to $11.0 billion in 2014, a 7.6 percent increase from 2013
- Variable-rate demand obligation (VRDO) issuance to
rise slightly to $10.0 billion in 2014, recovering from the record low of $8.3
billion estimated to be issued in 2013.
Interest Rate Forecast
Survey respondents offered relatively uniform views
on interest rates in the coming year. The federal fund rate was expected to
remain unchanged in 2014. Forecasts
- Two-year Treasury note yield was expected to rise
from 0.34 percent end-December 2013 to 0.69 percent by end-December 2014.
- 10-year Treasury note yield was expected to climb
from 2.77 percent end-December 2013 to 3.5 percent end-December 2014.
A full copy of the SIFMA 2014
Municipal Bond Issuance Survey is available here: http://www.sifma.org/research/item.aspx?id=8589946585.
Additional information about SIFMA’s activities and
developments in the municipal securities market can be found at www.sifma.org/issues/?taxid=156. For individuals and investors interested in learning more about
investing in the fixed-income markets, information can be found online at the
SIFMA-sponsored educational website Investing in Bonds at www.InvestingInBonds.com.
Industry and Financial Markets Association (SIFMA) brings together the shared
interests of hundreds of securities firms, banks and asset managers. SIFMA's
mission is to support a strong financial industry, investor opportunity,
capital formation, job creation and economic growth, while building trust and
confidence in the financial markets. SIFMA, with offices in New York and
Washington, D.C., is the U.S. regional member of the Global Financial Markets
Association (GFMA). For more information, visit http://www.sifma.org.