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 $94.1 billion in the second quarter of 2018, an increase of 52.2 percent from the prior quarter ($61.8 billion) but a decline of 6.6 percent year-over-year (y-o-y) ($100.7 billion). Including private placements ($3.0 billion), long-term municipal issuance for 2Q’18 was $97.1 billion. Year to date ending the second quarter, issuance volumes totaled $155.9 billion, well under the 10-year average of $179.0 billion in issuance in the first two quarters of the year.

Tax-exempt issuance totaled $79.5 billion in 2Q’18, an increase of 44.6 percent q-o-q but a decline of 9.1 percent y-o-y. Year to date ending June, tax-exempt issuance totaled $134.5 billion. Taxable issuance totaled $8.1 billion in 2Q’18, an increase of 75.9 percent q-o-q but a decline of 14.9 percent y-o-y. Year to date ending June, taxable issuance totaled $12.7 billion. AMT issuance was $6.5 billion in 2Q’18, an increase of 190.6 percent and 72.8 percent, respectively, q-o-q and y-o-y. Year to date ending June, AMT issuance totaled $8.7 billion.

By use of proceeds, general purpose led issuance totals in 2Q’18 ($26.7 billion), followed by primary & secondary education ($16.2 billion), higher education ($8.2 billion), water & sewer facilities ($6.5 billion) and airports ($5.6 billion). Refunding volumes rose slightly to 21.9 percent of issuance in 2Q’18 from 19.4 percent in the prior quarter but remain well below the averages in prior years due to the elimination of advance refundings 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
• Municipal ULF Intern: Rohan Desai
• Municipal ULF Intern: Yuki Lau

Municipal Division

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