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 $83 billion in the fourth quarter of 2018, a decline of 2.1 percent from the prior quarter ($83.0 billion) and a decline of 40.5 percent year-over-year (y-o-y) ($136.4 billion). For the full year, municipal issuance was $320.2 billion, a decline of 21.6 percent from 2017, and is well under the 10-year average annual volume of $363.8 billion.

Tax-exempt issuance totaled $71.7 billion in 4Q’18, an increase of 0.1 percent quarter-over-quarter (q-o-q) but a decline of 40.0 percent y-o-y; for the full year, tax-exempt issuance totaled $277.9 billion, a decline of 22.6 percent from 2017. Taxable issuance totaled $5.2 billion in 4Q’18, a decline of 28.1 percent q-o-q and 54.6 percent y-o-y; for the full year taxable issuance totaled $25.1 billion, a decline of 26.5 percent from 2017. Alternative Minimum Tax (AMT) issuance was $4.3 billion in 4Q’18, an increase of 5.0 percent q-o-q but a decline of 20.1 percent y-o-y; for the full year, AMT issuance totaled $17.2 billion, an increase of 11.5 percent from 2017.

 

By use of proceeds, general purpose led issuance volumes in 4Q’18 ($18.6 billion), followed by primary and secondary education ($13.2 billion), general acute care hospital ($7.8 billion), water and sewer facilities ($5.7 billion), and airports ($4.6 billion). For the full year, general purpose led issuance volumes ($82.0 billion), followed by primary and secondary education ($57.3 billion), water and sewer facilities ($25.5 billion), general acute care hospital ($21.5 billion), and higher education ($20.8 billion).

 

Credits

SIFMA Research

• Katie Kolchin, CFA
• Sharon Sung
• Justyna Podziemska

Municipal Division

• Leslie Norwood
• Michael Decker