US Municipal Credit Report, Third Quarter 2017

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 $84.6 billion in the third quarter of 2017, a decline of 16.0 percent from the prior quarter ($100.7 billion) and a decline of 22.0 percent year-over-year (y-o-y) ($108.7 billion). As of the end of September, year-to-date municipal issuance totaled $271.8 billion and was generally in line with the 10-year average of $271.6 billion for the first three quarters of the year. Including private placements ($3.1 billion), long-term municipal issuance for 3Q’17 was $87.6 billion.

2017 Q3: Municipal Issuance

Tax-exempt issuance totaled $75.2 billion in 3Q’17, a decline of 14.0 percent q-o-q and a decline of 23.7 percent y-o-y; year to date, tax-exempt issuance was $239.1 billion. Taxable issuance totaled $5.9 billion in 3Q’17, a decline of 37.3 percent q-o-q and 25.1 percent y‑o‑y; year to date, taxable issuance totaled $22.7 billion. AMT issuance was $3.5 billion in 3Q’17, a decline of 7.9 percent q-o-q but an increase of 49.4 percent y-o-y; year to date, AMT volumes were $10.0 billion year to date ending September.

By use of proceeds, general purpose led issuance totals in 3Q’17 ($20.2 billion), followed by primary & secondary education ($15.5 billion) and higher education ($7.8 billion). Refunding volumes rose slightly to comprise 44.1 percent of issuance in 3Q’17 from 41.4 percent in the prior quarter but declined from 52.4 percent from the third quarter of 2016.

Credits

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • Assistant Vice President, Research: Sharon Sung
  • Intern, Research: Tommy Rodriguez

Municipal Division

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