US Municipal Credit Report, 2012 Q4 and Full Year



February 6, 2013

US Municipal Credit Report, 2012 Q4 and Full Year

About the Report

The municipal bond credit report is a quarterly report on the trends and statistics of U.S. municipal bond market, both taxable and tax-exempt. Issuance volumes, outstanding, credit spreads, highlights and commentary are included.

Summary

According to Thomson Reuters, long-term municipal issuance volume, including taxable and tax-exempt issuance, totaled $91.3 billion in the fourth quarter of 2012, an increase of 9.3 percent from the prior quarter ($83.6 billion) but a decline of 0.6 percent year-over-year (y-o-y). For the full year 2012, municipal issuance totaled $366.7 billion, just shy of the 10-year average ($381.3 billion) and at levels last seen in 2003 ($378.5 billion).

Tax-exempt issuance totaled $79.4 billion in 4Q'12, a 16.9 percent increase quarter-over-quarter ($80.9 billion) but a decline of 1.9 percent y-o-y ($67.9 billion). For the full year 2012, tax-exempt issuance reached $321.9 billion, representing 87.8 percent of all issuance, similar in proportion to 2011 (86.2 percent). AMT issuance totaled $3.6 billion in 4Q'12, a decline of 26.9 percent q-o-q but an increase of 54.4 percent y-o-y. For the full year 2012, AMT issuance was $13.0 billion, an increase of 61.1 percent from 2011. Taxable issuance was $8.7 billion in 4Q'12, a decline of 19.5 percent q-o-q but unchanged y-o-y. For the full year 2012, taxable issuance was $31.8 billion, also similarly unchanged from the full year 2011.

By use of proceeds, general purpose led issuance totals in 4Q'12 ($24.2 billion), followed by primary & secondary education ($13.6 billion), and water & sewer facilities ($7.3 billion). For the full year 2012, general purpose also led totals ($99.3 billion), followed by primary & secondary education ($58.3 billion) and water & sewer facilities ($39.2 billion).

Refundings remained elevated in the fourth quarter, but declined slightly as a percentage of issuance (57.3 percent) compared to 3Q'12 (59.5 percent), but still above 4Q'11 (47.8 percent). For the full year, refundings represented 61.5 percent by dollar amount, a new high.

Credits

SIFMA Research 

  • Managing Director, Director of Research: Kyle Brandon
  • Director, Research: Sharon Sung

Municipal Division 

  • Managing Director, Associate General Counsel, Co-Head: Leslie Norwood
  • Managing Director, Associate General Counsel: David Cohen
  • Managing Director, Co-Head: Michael Decker
 

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Disclaimer

The Securities Industry and Financial Markets Association (SIFMA) prepared this material for informational purposes only. SIFMA obtained this information from multiple sources believed to be reliable as of the date of publication; SIFMA, however, makes no representations as to the accuracy or completeness of such third party information. SIFMA has no obligation to update, modify or amend this information or to otherwise notify a reader thereof in the event that any such information becomes outdated, inaccurate, or incomplete.


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