SIFMA Issues 2014 Municipal Bond Issuance Survey

 Release Date: December 11, 2013
 Contact: Liz Pierce, 212-313-1173, 

 SIFMA Issues 2014 Municipal Bond Issuance Survey  

 --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 waned.”

 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 2013;
  •  Long-term alternative minimum tax (AMT) issuance is projected to rise to $11.0 billion in 2014, a 7.6 percent increase from 2013 issuance;
  •  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 include:

  •  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:

 Additional information about SIFMA’s activities and developments in the municipal securities market can be found at 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   


 The Securities 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





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In New York:
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 Liz Pierce



In Washington:

Carol Danko

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