Long-term public municipal issuance volume totaled $110.4 billion in the second quarter of 2015 according to Thomson Reuters, an increase of 6.2 percent from the prior quarter ($104.0 billion) and 32.7 percent year-over-year (y-o-y) ($83.2 billion). Including private placements ($2.5 billion), long-term municipal issuance for 2Q’15 was $113.0 billion.

Tax-exempt issuance totaled $99.8 billion in 2Q’15, an increase of 5.2 percent and 34.6 percent q-o-q and y-o-y, respectively. Taxable issuance totaled $7.9 billion in 2Q’15, an increase of 15.3 percent and 27.7 percent respectively, q-o-q and y o y. AMT issuance was $2.8 billion, an increase of 16.8 percent q-o-q but a decline of 4.2 percent y-o-y. Year-to-date, municipal issuance totaled $214.5 billion, up 50.0 percent from last year and well above the 10-year average of $186.4 billion, largely due to the surge in issuance from the first quarter.

By use of proceeds, general purpose led issuance totals in 2Q’15 ($28.1 billion), followed by primary & secondary education ($25.7 billion), and higher education ($11.2 billion). Other notable sectors that saw an increase in issuance were public power ($6.3 billion, an increase of 94.4 percent and 122.4 percent q-o-q and y-o-y, respectively), student loans ($917.1 million, an increase of 109.8 percent and 64.2 percent q-o-q and y-o-y respectively), and seaports/marine terminals ($525.9 million, an increase of 226.2 percent and 24.8 percent q-o-q and y-o-y, respectively).

Refunding volumes as a percentage of issuance declined from the prior quarter, with 48.6 percent of issuance refunded compared to 62.2 percent in 1Q’15 and 44.9 percent in 2Q’14.

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 ULF Interns

• Municipal ULF Intern: Brittny Evangelista
• Municipal ULF Intern: Hannah Waterman

Municipal Division

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