US Municipal Credit Report, First Quarter 2014

Long-term public municipal issuance volume totaled $60.4 billion in the first quarter of 2014 according to Thomson Reuters, a decline of 17.7 percent and 25.7 percent, respectively, from the prior quarter ($73.4 billion) and year-over-year (y-o-y) ($81.3 billion). Year to date, first quarter issuance figures are well below the 10-year average of $83.7 billion. Including private placements ($2.2 billion), long-term municipal issuance for 1Q’14 was $62.6 billion.

Tax-exempt issuance totaled $53.6 billion in 1Q’14, a decline of 16.1 percent and 21.3 percent q-o-q and y-o-y, respectively. Taxable issuance totaled $5.5 billion in 1Q’14, a decline of 16.0 percent and 48.7 percent q-o-q and y o y, respectively. AMT issuance was $1.3 billion, a decline of 55.2 percent and 47.6 percent, q-o-q and y-o-y.

By use of proceeds, general purpose led issuance totals in 1Q’13 ($19.6 billion), followed by primary & secondary education ($10.5 billion), and water & sewer facilities ($5.6 billion).

Refunding volumes as a percentage of issuance remained largely the same as the prior quarter, with 30.1 percent of issuance compared to 30.2 percent in 4Q’13 used to refund debt.

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.

Credits

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • Assistant Vice President, 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