According to Thomson Reuters, long-term municipal issuance volume, including taxable and tax-exempt issuance, totaled $46.8 billion in the first quarter of 2011, less than a third of issuance than the prior quarter ($132.3 billion in 4Q’10) and less than half from first quarter of 2010. The increase in issuance in 4Q’10 partly contributed to weak supply in 1Q’11, but weak demand from the traditional retail investor base, high yields and a certain level of fiscal austerity stemming from negative headlines also contributed to light supply. At the current pace, full year issuance could fall short of $200 billion, a level not seen since 1996. However, a seasonal spike in issuance this summer could boost issuance for the year.

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.

This report also includes an update to the VRDO markets.

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, Co-Head: Michael Decker
• Manager, Policy (Advocacy): Lynne Funk