US Municipal Credit Report, Fourth Quarter and Full Year 2016



February 6, 2017

US Municipal Credit Report, Fourth Quarter and Full Year 2016

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 public municipal issuance volume totaled $100.3 billion in the fourth quarter of 2016, a decline of 7.5 percent from the prior quarter ($108.5 billion) but an increase of 31.1 percent year-over-year (y-o-y) ($76.5 billion). In-cluding private placements ($4.5 billion), long-term municipal issuance for 4Q'16 was $104.9 billion. Despite the fourth quarter decline, full year issuance was $423.8 billion, an increase of 12.2 percent from 2015 well above the 10-year average of $372.0 billion. In-cluding private placements, full year issuance was $$445.8 billion.

Tax-exempt issuance totaled $91.2 billion in 4Q'16, a decline of 7.3 percent q-o-q but an increase of 35.2 percent y-o-y. For the full year, tax-exempt issuance was $383.1 billion, an increase of 13.2 percent from the prior year. Taxable issuance totaled $7.3 billion in 4Q'16, a decline of 7.3 percent q-o-q but an increase of 40.0 percent y o y. For the full year, taxa-ble issuance was $28.5 billion, an increase of 2.2 percent from 2015. AMT issuance was $1.9 billion in 4Q'16, a decline of 18.4 percent q-o-q and 52.1 percent y-o-y. For the full year, AMT issuance was $12.2 billion, 8.1 percent above 2015 volumes.

By use of proceeds, general purpose led issuance totals in 4Q'16 ($22.7 billion), followed by primary & secondary education ($19.0 billion), and water & sewer ($10.7 billion). For the full year, general purpose led issuance totals ($103.7 billion), followed by primary & secondary education ($81.9 billion), and water & sewer ($44.1 billion).

Refunding volumes comprised 46.6 percent of issuance in 4Q'16, declining slightly from the prior quarter (52.3 percent) but was an increase year-over-year (43.5 percent). For the full year, refunding volumes comprised 50.7 percent of all issuance, down slightly from 2015 (51.8 percent).

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, 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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