Long-term municipal issuance volume, including taxable and tax-exempt issuance, totaled $72.7 billion in the third quarter of 2011 according to Thomson Reuters, a 6 percent increase from the prior quarter ($68.6 billion), but a decline of 22.4 percent from 3Q’10 ($93.7 billion). Issuance remained light in part due to seasonality, but also in part due to issuers avoiding the volatile period in early August around last-minute U.S. debt ceiling negotiations. Year-to-date issuance totaled $188.0 billion, remaining on course at issuance levels from 2000-2001 and well below the 20-year average ($220.3 billion); however, given the exceptionally low rates in the fourth quarter, issuance may tick up slightly as issuers take advantage of the rate environment through refundings.

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
• Manager, Research: Sharon Sung

Municipal Division

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