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 Refinitiv, long-term public municipal issuance volume totaled $82.9 billion in the third quarter of 2018, a decrease of 12.0 percent from the prior quarter ($94.2 billion) and a decline of 2.3 percent year-over-year (y-o-y) ($84.8 billion). Including private placements, long-term municipal issuance for 3Q’18 was $85.8 billion. Year to date ending the third quarter, issuance volumes totaled $238.9 billion, well under the 10-year average of $263.7 billion in issuance in the first three quarters of the year.

Tax-exempt issuance totaled $71.6 billion in 3Q’18, a decline of 10.1 percent q-o-q and 5.2 percent y-o-y. Year to date ending September, tax-exempt issuance totaled $206.2 billion. Taxable issuance totaled $7.2 billion in 3Q’18, a decline of 10.3 percent q-o-q but an increase of 21.8 percent y-o-y. Year to date ending September, taxable issuance totaled $19.9 billion. AMT issuance was $4.1 billion in 3Q’18, a decline of 10.1 percent q-o-q but an increase of 19.6 percent y-o-y. Year to date ending September, AMT issuance totaled $12.8 billion.

 

By use of proceeds, general purpose led issuance totals in 3Q’18 ($21.2 billion), followed by primary & secondary education ($13.0 billion), water & sewer facilities ($8.8 billion), general acute care hospitals ($6.3 billion), and airports ($5.2 billion). Refunding volumes rose slightly to 27.9 percent of issuance in 3Q’18 from 24.1 percent in the prior quarter but remain well below the averages in prior years.

 

Credits

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Assistant Vice President, Research: Sharon Sung
• Intern, Research: Sotirios Nonas

Municipal Division

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