According to Thomson Reuters, long-term municipal issuance volume, including both taxable and tax-exempt issuance, totaled $100.2 billion in the second quarter of 2010, down 3.6 percent from $104.0 billion in 1Q’10 and 9.7 percent below that in 2Q’09. Excluding taxables, tax-exempt issuance totaled $72.7 billion, an increase of 6.1 and a decline of 16.6 percent, respectively, from 1Q’10 and 2Q’09.

Taxable issuance modestly gained additional market share in 2Q’10, claiming 32.8 percent of all municipal issuance compared with 32.5 percent and 20.8 percent, respectively, in 1Q’10 and 2Q’09. While Build America Bonds (BABs) have accounted for the majority of taxable municipal issuance (76.7 percent of all taxables issued in 2Q’10), approximately $2.4 billion in non-BAB taxable bonds were issued following the enactment of the Hiring Incentives to Restore Employment Act (HIRE Act).

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.

Credits

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Research Analyst: Sharon Sung
• Research Analyst: Maria Victoria Barba

Municipal Division

• Managing Director, Associate General Counsel, Co-Head: Leslie Norwood
• Managing Director, Co-Head: Michael Decker
• Policy Analyst (Advocacy): Lynne Funk