US Municipal Bond Credit Report, 2012 Q1

Long-term municipal issuance volume, including taxable and tax-exempt issuance, totaled $78.2 billion in the first quarter of 2012 according to Thomson Reuters, a 15.1 percent decline from the prior quarter ($92.1 billion), but an increase of 66.6 percent from 1Q’11 ($46.9 billion). Refundings were a substantial portion of the issuance in the first quarter; with 47 percent of all issuance derived from refunding, compared to 30.2 percent in 4Q’11 and 29.2 percent in 1Q’11. Direct loans/placements may have continued to take supply out of the market as well.

Tax-exempt issuance totaled $71.3 billion in 1Q’12, a decline of 12.0 percent quarter-over-quarter (q-o-q) but an increase of 84.4 percent year-over-year ($38.7 billion). Due to the expiration of most Congressional-authorized programs in 2011, taxable issuance declined to $5.7 billion in 1Q’12, a drop of 34.0 percent and 23.5 percent, respectively, q-o-q ($8.7 billion) and y-o-y ($7.5 billion). AMT issuance totaled $1.1 billion in 1Q’12, down 53.1 percent q-o-q ($2.3 billion) and up 46.6 percent y-o-y ($1.1 billion).

By use of proceeds, general purpose issuance led issuance totals in 1Q’12 ($23.2 billion), followed by primary & secondary education ($15.2 billion), water and sewer facilities ($11.1 billion), and higher education ($9.2 billion).

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, rating changes, highlights and commentary are included.


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