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 $61.9 billion in the first quarter of 2018, a decline of 54.6 percent from the prior quarter ($136.4 billion) and a decline of 28.5 percent year-over-year (y-o-y) ($85.5 billion). Including private placements ($1.4 billion), long-term municipal issuance for 1Q’18 was $63.3 billion.

Tax-exempt issuance totaled $55.1 billion in 1Q’18, a decline of 53.9 percent q-o-q and 28.0 percent y-o-y. Taxable issuance totaled $5.0 billion in 1Q’18, a decline of 59.9 and 36.5 percent, respectively, q-o-q and y‑o‑y. AMT issuance was $2.2 billion in 1Q’18, a decline of 59.0 percent q-o-q and 19.6 percent y-o-y.

 

By use of proceeds, general purpose led issuance totals in 1Q’18 ($17.2 billion), followed by primary & secondary education ($14.7 billion), higher education ($4.2 billion), water & sewer facilities ($4.1 billion) and toll roads/highways/streets ($3.3 billion). Refunding volumes plummeted to 19.4 percent of issuance in 1Q’18 from 47 percent in the prior quarter as advance refundings were eliminated beginning in 2018 with the passage of the Tax Cuts and Jobs Act.

 

Credits

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Assistant Vice President, Research: Sharon Sung
• Intern, Research: Daniel Konstantionovsky
• Intern, Research: Emily Losi

Municipal Division

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