2018 IN STATISTICS...Note: Amounts represent dollars per $1,000 face value of bond issues. Underwriting spreads include managers’ fees, underwriting fees, average takedowns, and

2018 IN STATISTICSMidyear Review

Tax reform causes signifi cantdip in fi rst half issuance

001_BB08201801 1 8/17/2018 4:12:29 PM

The Bond BuyerA2 Monday, August 20, 2018

Underwriting Spreads: 1999-2018 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ALL BONDS $7.14 $6.68 $6.48 $6.17 $5.78 $5.58 $5.45 $5.59 $5.27 $4.89 $6.21 $5.94 $5.62 $5.52 $5.20 $5.00 $4.64 $4.65 $4.55 $4.28

Negotiated 7.18 6.72 6.52 6.20 5.80 5.49 5.56 5.66 5.41 4.82 6.22 6.03 5.61 5.40 5.17 5.08 4.57 4.62 4.54 4.33

Competitive 6.82 6.38 6.10 5.86 5.57 6.31 4.42 4.89 4.12 5.61 6.16 5.23 5.65 6.17 5.35 4.58 4.96 4.77 4.57 4.10

New-Money 7.41 6.68 6.65 6.27 5.85 5.65 5.71 5.60 5.37 5.47 6.39 6.05 5.98 5.57 5.25 5.36 5.05 4.96 5.05 4.38

Refunding 6.71 6.31 6.01 5.88 5.45 5.33 5.21 5.45 4.87 3.82 5.84 5.59 5.16 5.51 5.13 4.65 4.40 4.49 4.28 4.13

Combined 6.68 7.00 6.63 6.38 6.23 5.80 5.20 5.68 5.34 5.01 6.20 6.27 5.52 5.46 5.21 4.99 4.47 4.46 4.03 4.01

Development 9.28 9.49 8.02 4.79 7.33 6.43 6.74 7.04 6.39 4.88 3.65 5.07 5.55 3.43 5.73 6.67 6.58 6.13 6.73 9.73

Education 6.88 6.67 6.52 6.38 5.74 5.55 5.45 5.38 5.12 5.32 6.43 6.33 6.13 6.06 5.53 5.23 5.05 4.92 4.84 4.80

Electric Power 6.62 4.75 5.94 6.17 5.58 5.39 4.34 5.24 4.83 4.74 5.81 5.35 4.52 4.51 4.48 4.24 2.86 3.18 3.08 3.14

Environmental 5.74 5.31 5.82 5.89 5.87 5.18 4.96 4.34 4.15 4.37 5.20 4.31 5.54 5.76 5.99 5.09 3.77 4.52 4.69 5.39

Health Care 7.30 6.99 7.26 6.59 6.50 5.65 4.99 5.64 5.90 4.13 7.78 8.56 7.10 7.42 7.08 7.28 6.38 6.37 5.86 5.90

Housing 7.87 7.60 6.68 6.63 5.81 5.86 5.43 6.11 5.84 5.40 5.66 6.40 6.89 6.57 6.09 6.10 4.72 4.82 4.72 4.32

Public Facilities 7.75 8.00 7.25 6.41 6.12 5.97 6.28 6.87 5.24 5.02 7.44 6.69 6.89 6.54 5.57 6.36 5.53 6.01 5.56 4.92

Transportation 6.26 5.33 5.65 5.14 5.31 5.07 4.85 5.06 4.78 4.80 5.55 5.28 4.79 4.74 4.24 3.94 3.57 3.95 3.32 3.15

Utilities 7.33 7.00 6.26 6.45 6.07 5.48 5.73 5.22 5.53 4.63 6.00 5.88 5.74 6.21 5.62 5.02 4.73 4.11 4.05 4.16

General Purpose 7.19 6.78 6.64 6.28 5.61 5.72 5.86 6.01 5.13 5.20 5.87 5.28 4.93 4.69 4.52 4.41 4.08 4.04 3.98 3.68

Stimulus Program n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.45 6.44 7.16 5.86 5.88 8.05 4.87 4.86 4.38 1.51

Note: Amounts represent dollars per $1,000 face value of bond issues. Underwriting spreads include managers’ fees, underwriting fees, average takedowns, and expenses. Private placements, short-term notes maturing in under 13 months, and remarketings of variable-rate securities are excluded. Source: Thomson Reuters (Jul. 11)

Taxable Bonds: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $13,800.2 523 $18,311.3 526 –24.6%First Quarter 4,978.2 201 7,794.0 218 –36.1Second Quarter 8,822.0 322 10,517.2 308 –16.1Development 896.7 50 1,958.0 58 –54.2Education 3,134.4 223 6,011.4 201 –47.9Electric Power 63.2 8 83.5 4 –24.3Environmental Facilities 0.0 0 124.8 6 –100.0Healthcare 1,000.6 20 793.8 24 +26.1Housing 1,502.0 31 2,165.6 43 –30.6Public Facilities 691.0 30 333.3 16 +107.3Transportation 644.7 21 1,553.9 19 –58.5Utilities 345.8 19 957.7 26 –63.9General Purpose 5,521.9 121 4,329.2 129 +27.6Tax-Exempt 0.0 0 0.0 0 n.m.Taxable 13,800.2 523 18,311.3 526 –24.6Minimum-Tax 0.0 0 0.0 0 n.m.New-Money 7,969.5 373 8,796.0 322 –9.4Refunding 3,170.0 127 5,782.8 168 –45.2Combined 2,660.7 23 3,732.5 36 –28.7Negotiated 10,019.0 279 13,960.4 357 –28.2Competitive 2,655.9 183 2,760.7 99 –3.8Private Placements 1,125.3 61 1,590.2 70 –29.2Revenue 7,086.5 229 12,985.6 277 –45.4General Obligation 6,713.7 294 5,325.6 249 +26.1Fixed Rate 13,311.6 508 16,037.9 497 –17.0Variable Rate (Short Put) 361.6 10 877.5 14 –58.8Variable Rate (Long/No Put) 0.0 0 316.6 3 –100.0Zero Coupon 27.0 4 0.5 1 +5300.0Linked Rate 100.0 1 1,078.7 11 –90.7Convertible 0.0 0 0.0 0 n.m.Bond Insurance 716.7 49 842.0 68 –14.9Letter of Credit 106.3 3 369.9 4 –71.3Standby Purchase Agreements 44.4 2 43.9 2 +1.1Insured Mortgages 0.0 0 163.4 4 –100.0Guaranties 278.0 16 338.2 28 –17.8Other Enhancements 0.0 0 0.0 0 n.m.State Governments 2,873.4 12 2,590.9 13 +10.9State Agencies 3,317.8 77 6,259.8 118 –47.0Counties & Parishes 1,062.3 31 742.4 30 +43.1Cities & Towns 2,367.3 121 2,109.5 120 +12.2District 986.3 164 886.7 117 +11.2Local Authorities 2,209.4 90 1,987.2 94 +11.2Colleges & Universities 888.2 23 3,727.2 33 –76.2Direct Issuer 95.6 5 7.6 1 +1157.9Tribal Government 0.0 0 0.0 0 n.m.Build America Bonds 0.0 0 0.0 0 n.m.Qualified Sch Construction 0.0 0 123.6 8 –100.0Other Stimulus Program 0.0 0 92.0 11 –100.0Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

Taxable BondsSenior Managers: First Half 2018

Manager Amt ($mill) 1 J P Morgan $2,090.9 2 Citi 1,618.5 3 BA Merrill Lynch 1,509.9 4 RBC Capital Mkts 1,230.2 5 Wells Fargo 759.1 6 Morgan Stanley 735.4 7 Goldman Sachs 722.2 8 Raymond James 537.3 9 Barclays 379.7 10 Stifel Nicolaus 340.2Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Taxable BondsFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Public Resources Adv $3,238.1 2 PFM Financial Adv 1,186.6 3 KNN Public Fin 731.3 4 Swap Financial 601.5 5 Hilltop Securities 417.8 6 Acacia Financial 377.8 7 Columbia Cap Mgmt 306.3 8 CSG Advisors Inc 299.5 9 KeyBanc Capital Mkts 251.0 10 Hammond Hanlon 214.0Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Taxable IssuesDate Issuer Amt ($mill) Manager(s)Apr-17 California (State), GOs, (tax) (nm/ref) $2,147.0 Various firmsMar-13 NYS Dorm Authority, (tax) (cpt) 1,329.7 Wells FargoJun-19 Georgia (State), GOs, (tax) (cpt) 1,228.6 J P MorganMay-22 Regents of the Univ of California, (tax) 1,227.7 BA Merrill Lynch/Ramirez & Co IncMar-6 Oklahoma Dev Finance Auth, (tax) 1,162.3 BA Merrill Lynch/CitiApr-11 New York City-New York, GOs, (tax) (cpt) 1,100.0 J P Morgan Securities LLCMay-15 NYC Transitional Finance Auth, (tax) (cpt) (ref) 1,100.0 UBS Financial Services IncFeb-22 New York City-New York, GOs, (tax) (cpt) 950.0 Jefferies LLCMay-16 San Francisco City & Co Airport Comm, (tax) 881.8 Citi/BA Merrill LynchJan-23 Port Authority of NY & NJ, GOs, (tax) (ref) 832.3 BA Merrill LynchKey to abbreviations: neg – negotiated; nm – new-money; pvt – private placement; ref – refunding. Source: Thomson Reuters (Jul. 11)

midyear review

ContentsTax Reform Causes Decline in 2018 First Half Volume ��A3

Long-term issuance, bonds and notes by state �� A3-A4

Bond Insurance Penetration Rate Rises Amid Issuance Decline ��A5

Why Issuance of Short-Term Notes Declined in the First Half ��A6

Issuance by sector �� A7-A12

Health Care, Development Environmental Facilities Help Lead the Way Down �� A10

Rankings: Senior managers, co-managers, financial advisors, issuers �� A13

Rankings: Bond, disclosure, special tax counsel ��A14-A15

Bond Buyer Indexes �� A15

Cover: Adobe Stock

002_BB08201801 2 8/17/2018 4:12:30 PM

www.bondbuyer.com A3Monday, August 20, 2018

Long-Term Bond Sales: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

TOTAL $164,676.3 4,749 $200,991.9 5,871 –18.1%

January 21,499.7 579 36,010.3 777 –40.3

February 17,857.4 557 23,385.1 806 –23.6

March 26,022.3 743 32,878.0 958 –20.9

April 31,370.7 768 30,707.0 935 +2.2

May 34,941.4 1,124 38,710.4 1,203 –9.7

June 32,984.8 978 39,301.1 1,192 –16.1

First Quarter 65,379.4 1,879 92,273.4 2,541 –29.1

Second Quarter 99,296.9 2,870 108,718.5 3,330 –8.7

Development 3,234.4 191 8,368.9 193 –61.4

Education 45,823.3 1,867 64,384.8 2,473 –28.8

Electric Power 3,491.8 54 3,733.3 46 –6.5

Environmental Facilities 318.1 11 921.7 25 –65.5

Health Care 10,350.9 154 20,688.4 246 –50.0

Housing 9,345.1 253 9,509.6 287 –1.7

Public Facilities 4,910.4 226 4,269.9 224 +15.0

Transportation 24,529.5 235 23,317.7 251 +5.2

Utilities 18,486.1 526 19,745.2 682 –6.4

General Purpose 44,186.8 1,232 46,052.3 1,444 –4.1

Tax-Exempt 142,121.0 4,168 175,901.9 5,267 –19.2

Taxable 13,826.3 530 18,311.3 526 –24.5

Minimum Tax 8,728.9 51 6,778.7 78 +28.8

New-Money 117,814.2 3,738 95,478.8 3,635 +23.4

Refunding 23,714.4 739 56,593.1 1,674 –58.1

Combined 23,147.6 272 48,920.0 562 –52.7

Negotiated 111,080.1 2,316 142,827.9 3,115 –22.2

Competitive 44,841.8 1,986 44,342.3 2,160 +1.1

Private Placements 8,754.4 447 13,821.8 596 –36.7

Revenue 95,040.6 1,784 121,059.1 2,174 –21.5

General Obligation 69,635.6 2,965 79,932.9 3,697 –12.9

Fixed-Rate 151,040.5 4,551 187,451.2 5,588 –19.4

Variable-Rate (Short Put) 4,288.5 76 5,819.4 117 –26.3

Variable-Rate (Long/No Put) 6,125.2 66 3,179.8 52 +92.6

Zero-Coupon 440.7 26 681.9 58 –35.4

Linked-Rate 2,718.2 28 3,614.2 52 –24.8

Auction Rate 0.0 0 0.0 0 n.m.

Convertible 63.1 2 245.5 4 –74.3

Bond Insurance 9,059.8 625 11,803.9 863 –23.2

Letters of Credit 746.0 13 1,029.0 17 –27.5

Standby Purch Agreements 1,307.4 20 326.9 9 +299.9

Insured Mortgages 624.8 21 1,182.7 49 –47.2

Guaranties 14,056.5 586 16,920.9 665 –16.9

Other Enhancements 0.0 0 0.0 0 –27.5

State Governments 16,789.5 78 17,869.4 88 –6.0

State Agencies 48,231.5 543 56,597.4 716 –14.8

Counties & Parishes 10,848.3 296 11,427.1 318 –5.1

Cities & Towns 21,941.6 1,301 27,852.1 1,531 –21.2

Districts 33,537.5 1,893 45,317.1 2,473 –26.0

Local Authorities 25,771.7 526 30,349.2 617 –15.1

Colleges & Universities 6,273.4 93 10,808.4 120 –42.0

Direct Issuers 1,214.0 17 750.5 7 +61.8

Tribal Governments 68.8 2 20.8 1 +230.8

Cooperative Utilities 0.0 0 0.0 0 n.m.

Bank-Qualified 6,353.1 1,661 9,350.1 2,243 –32.1

Build America Bonds 0.0 0 0.0 0 n.m.

Qualified Sch Construction 0.0 0 123.6 8 –100.0

Other Stimulus 4.3 1 114.3 13 –96.2Notes: Private placements and municipal forwards are included, but short-term notes and remarketings are excluded. n.m. - not meaningful. Source: Thomson Reuters (Jul. 11)

midyear review

Municipal bond volume is running 18.1% lower than last year’s historic level, in line with analyst expectations given the enormous impact the new tax legislation has had on the market.

Halfway through the year, total vol-ume stands at $164.676 billion over 4,749 deals, compared with $200.992 billion in 5,871 transactions, accord-ing to data from Thomson Reuters. The monthly volume was down 40.3% in January, 23.6% lower in February, dropped 20.9% in March, climbed 2.2% in April, fell 9.7% in May, and was 16.1% lower in June.

Volume did, for the most part, con-tinue to pick up and normalize with more distance from the commencement of the new tax laws.

Issuance in January totaled $21.50 billion, then fell to $17.86 billion, rose to $26.02 billion, rising again to $31.37 billion, higher to $35.95 billion, dip-ping to $32.98 billion and ending with $25.31 billion.

Volume for the first half of this year dropped to $164.68 billion, compared to $200.99 billion the year before. First quarter volume was down to $65.38 billion from $92.27 billion and second quarter issuance was lower to $99.29 billion from $108.72 billion.

“The Tax Cut legislation has directed issuance for the first half of 2018 and it is likely to influence bond activity for the second half of 2018 as well,” said Tom Kozlik, managing director and municipal strategist at PNC Capital Markets.

“But I think questions about the economy, policy uncertainty and deteri-orating credit quality are likely to keep issuance from jumping significantly for the rest of the year.”

At the end of 2017, he forecast total issuance for 2018 at $295 billion, a “significant departure from $436 bil-lion in 2017 and $444 billion in 2016, but there are some significant factors that are influencing it.”

Tax reform aside, Kozlik said that he has been “pleasantly surprised” with the level of new money that has come in 2018 versus not only his initial fore-cast, but relatively to what we have seen over the last several years.

“This activity to be indicating to us that some issuers in the municipal bond market are ready to utilize interested rates that, although are rising, are still near generational lows,” he said.

“It could also be indicating that the credit landscape may better improving for at least some of the market,” Kozlik said.

New-money is up 4.2% to $6.09 bil-lion in 460 deals, compared to $5.84 billion in 505 issues.

Peter Block, managing director or credit and market strategy at Ramirez and Co., said that total fixed-rate gross supply of $180 billion in 2018 is “only” 15-17% behind 2017, which is

surprising to the upside due primarily to the higher than projected new money component of $107 billion as of July 27 at 60% of total year to date.

“The new money in 2018 is also 62% of 2017’s total new money of $172 billon,” he said.

“New money is likely higher versus original projections due to the total gross number and still negative net sup-ply amidst high demand, particularly in still high-tax states such as Calif., New York, Illinois, etc.”

He added that this very strong de-mand for tax-exempt income has had the effect of compressing spreads, thereby helping borrowers offset year to date muni yield scale rate increases, making borrowing costs overall similar to 2017 levels.

“While we are still calling for full year gross at negative 27% year-over-year or roughly $317 billion, which im-plies a $22 billion monthly average, it is probable that we make an adjustment towards end of summer provided the phenomenon just discussed persists,” Block said.

Kozlik agreed, saying that If we took an average of second half issu-ance from 2009 to 2016 (not including 2017) and reduce that by 20%, we get a total of $152 billion.

“That means issuance would come in at a total of $317 billion ($165 bil-lion plus $152 billion) for the year,” he said.

“But even if we annualize first half 2018 numbers we still only get to about $330 billion.”

Kozlik said that although interest rates remain relatively low (but are on the rise), if anything there is more eco-nomic uncertainty now because of the questions about the negative impact the Tax Cut and tariffs could have.

“Some state and local governments are battling the crowding out impact from pensions, or are just generally seeing their credit deteriorate and do not want to add more liabilities to their balance sheet,” he said.

Kozlik said the big take-way is that issuance is still significantly down from last year.

“The total for 2018 could be the low-est since Build America Bonds accel-erated issuance into the end of 2010 and cut 2011 issuance to only $288 billion,” he said.

“I am not one that is seeing any-thing that leads me to think that there is swarm of municipal issuance waiting for the second half." q

Tax Reform Causes Decline in 2018 First Half Volume

By AAron WeitzmAn

RELATED CONTENTOther recent coverage of this topic is available with this article at BondBuyer.com

003_BB08201801 3 8/17/2018 4:12:30 PM


Bond Sales by State: First Half 2018 2017 Percent

States Rank Volume ($mill) # Issues Rank Volume ($mill) # Issues ChangeAlabama 12 3,617.5 66 25 2,422.4 71 +49.3Alaska 46 296.8 4 50 166.4 4 +78.4Arizona 26 1,906.6 67 22 2,584.1 82 –26.2Arkansas 37 738.7 38 40 732.1 48 +0.9California 1 26,699.9 375 1 38,107.7 581 –29.9Colorado 13 3,425.9 129 7 5,433.1 132 –36.9Connecticut 16 3,242.9 56 17 3,583.7 81 –9.5Delaware 39 564.5 7 42 526.2 6 +7.3Florida 11 4,027.8 158 13 4,477.0 148 –10.0Georgia 8 4,677.8 63 11 4,796.5 76 –2.5Hawaii 34 1,065.4 6 34 1,253.6 5 –15.0Idaho 45 366.6 19 45 469.1 18 –21.9Illinois 9 4,285.7 226 6 5,763.4 286 –25.6Indiana 35 1,022.5 116 30 1,874.3 118 –45.4Iowa 29 1,659.0 194 32 1,553.7 191 +6.8Kansas 36 987.2 80 33 1,275.8 102 –22.6Kentucky 23 2,062.8 65 31 1,846.3 67 +11.7Louisiana 40 515.1 24 23 2,541.9 50 –79.7Maine 41 514.0 19 41 549.0 27 –6.4Maryland 20 2,806.5 27 10 5,038.4 58 –44.3Massachusetts 6 5,044.6 124 9 5,042.0 120 +0.1Michigan 19 2,915.0 166 16 3,606.3 211 –19.2Minnesota 15 3,250.0 229 24 2,497.9 209 +30.1Mississippi 43 408.6 33 36 1,199.1 49 –65.9Missouri 24 2,014.0 146 18 3,410.7 192 –41.0Montana 47 236.6 13 43 515.9 25 –54.1Nebraska 38 600.2 97 37 1,134.3 167 –47.1Nevada 25 2,010.3 24 28 2,337.3 30 –14.0New Hampshire 48 230.6 10 44 514.0 19 –55.1New Jersey 5 5,461.5 87 12 4,584.4 118 +19.1New Mexico 33 1,197.3 22 38 939.7 26 +27.4New York 2 19,711.0 275 2 23,336.0 329 –15.5North Carolina 21 2,684.4 46 20 3,091.5 49 –13.2North Dakota 44 371.9 31 47 338.9 37 +9.7Ohio 10 4,271.9 108 8 5,308.5 146 –19.5Oklahoma 14 3,383.6 290 26 2,414.9 265 +40.1Oregon 27 1,884.1 54 14 4,287.8 69 –56.1Pennsylvania 4 8,548.8 172 4 7,950.8 246 +7.5Rhode Island 42 417.1 13 39 879.8 32 –52.6South Carolina 32 1,207.2 35 35 1,228.7 44 –1.7South Dakota 49 158.0 11 46 357.1 17 –55.8Tennessee 22 2,405.9 50 27 2,409.4 69 –0.1Texas 3 16,354.3 495 3 19,348.3 699 –15.5Utah 28 1,766.4 43 21 2,661.2 53 –33.6Vermont 50 134.5 6 49 272.7 13 –50.7Virginia 17 3,148.4 45 19 3,141.5 41 +0.2Washington 7 4,720.5 69 15 3,908.7 80 +20.8West Virginia 30 1,299.1 17 48 333.6 11 +289.4Wisconsin 18 2,932.8 283 5 6,855.6 333 –57.2Wyoming 51 77.3 2 51 74.2 8 +4.2American Samoa .. 0.0 0 .. 0.0 0 n.m.D. of Columbia 31 1,276.0 11 29 2,016.7 13 –36.7Guam 52 71.4 3 52 0.0 0 n.m.Puerto Rico .. 0.0 0 .. 0.0 0 n.m.Trust Territories .. 0.0 0 .. 0.0 0 n.m.Virgin Islands .. 0.0 0 .. 0.0 0 n.m.Other Territories .. 0.0 0 .. 0.0 0 n.m.

TOTAL $164,676.3 4,749 $200,991.9 5,871 -18.1%Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. – not meaningful. Source: Thomson Reuters (Jul. 11)

Note Sales by State: First Half 2018 2017 Percent

States Rank Volume ($mill) # Issues Rank Volume ($mill) # Issues ChangeAlabama 12 3,617.5 66 25 2,422.4 71 +49.3Alaska 20 90.0 1 28 98.0 1 –8.2Arizona 34 1.4 1 16 1,133.8 4 –99.9Arkansas .. 0.0 0 .. 0.0 0 n.m.California 1 3,238.2 17 6 5,654.5 29 –42.7Colorado 11 375.2 2 18 375.1 2 unch Connecticut 12 365.9 31 5 485.3 40 –24.6Delaware .. 0.0 0 .. 0.0 0 n.m.Florida 33 5.0 1 33 5.0 1 unch Georgia 17 133.0 3 19 260.0 2 –48.8Hawaii 19 93.8 1 20 6.1 2 +1437.7Idaho 8 540.0 1 25 485.8 1 +11.2Illinois 6 642.0 20 7 637.5 24 +0.7Indiana 23 49.4 4 13 93.0 8 –46.9Iowa 32 5.8 1 32 6.0 1 –3.3Kansas 15 174.0 5 12 119.1 8 +46.1Kentucky .. 0.0 0 .. 0.0 0 n.m.Louisiana 38 0.0 0 35 3.0 1 –100.0Maine 29 15.5 1 30 15.5 1 unch Maryland 9 491.0 2 26 346.0 1 +41.9Massachusetts 4 1,175.2 156 3 848.2 138 +38.6Michigan 26 25.0 1 17 71.5 3 –65.0Minnesota 36 .1 1 38 0.0 0 n.m.Mississippi 16 160.0 2 37 0.0 0 n.m.Missouri 21 66.0 1 29 66.0 1 unch Montana .. 0.0 0 .. 0.0 0 n.m.Nebraska 27 18.5 15 11 8.0 10 +131.3Nevada .. 0.0 0 .. 0.0 0 n.m.New Hampshire 22 58.0 3 15 57.7 4 +0.5New Jersey 3 2,754.0 236 2 2,220.4 268 +24.0New Mexico 18 130.7 1 27 158.9 1 –17.7New York 2 3,015.0 380 1 4,700.8 416 –35.9North Carolina 30 14.6 2 23 32.5 2 –55.1North Dakota .. 0.0 0 .. 0.0 0 n.m.Ohio 10 393.5 95 4 508.2 99 –22.6Oklahoma 35 .4 1 34 3.7 1 –89.2Oregon 31 7.8 1 31 5.8 1 +34.5Pennsylvania 24 33.7 4 21 5.8 2 +481.0Rhode Island 25 28.5 3 22 26.0 2 +9.6South Carolina 7 562.2 8 10 360.8 10 +55.8South Dakota .. 0.0 0 .. 0.0 0 n.m.Tennessee .. 0.0 0 .. 0.0 0 n.m.Texas 5 644.7 5 9 1,308.1 10 –50.7Utah 28 17.1 2 14 46.3 5 –63.1Vermont 37 0.0 0 24 95.0 2 –100.0Virginia .. 0.0 0 .. 0.0 0 n.m.Washington .. 0.0 0 .. 0.0 0 n.m.West Virginia .. 0.0 0 .. 0.0 0 n.m.Wisconsin 13 334.0 20 8 678.8 11 –50.8Wyoming .. 0.0 0 .. 0.0 0 n.m.American Samoa .. 0.0 0 .. 0.0 0 n.m.D. of Columbia 14 300.0 1 36 0.0 0 n.m.Guam .. 0.0 0 .. 0.0 0 n.m.Puerto Rico .. 0.0 0 .. 0.0 0 n.m.Trust Territories .. 0.0 0 .. 0.0 0 n.m.Virgin Islands .. 0.0 0 .. 0.0 0 n.m.Other Territories .. 0.0 0 .. 0.0 0 n.m.

TOTAL $15,959.0 1,029 $20,926.1 1,112 -23.7%Notes: Figures are based on issues maturing in less than 13 months. Private placements and municipal forwards are included, but remarketings are excluded. n.m. – not meaningful. Source: Thomson Reuters (Jul. 11)

midyear review

004_BB08201801 4 8/17/2018 4:12:31 PM


Bond Insurance: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $9,059.8 625 $11,803.9 863 –23.2%First Quarter 3,629.1 258 5,192.5 376 –30.1Second Quarter 5,430.7 367 6,611.4 487 –17.9Development 487.1 28 807.4 39 –39.7Education 2,418.1 261 5,134.3 382 –52.9Electric Power 348.5 7 110.9 7 +214.2Environmental Facilities 180.0 0 56.0 1 +221.4Healthcare 404.4 4 170.9 3 +136.6Housing 180.0 0 151.0 5 +19.2Public Facilities 974.2 40 284.0 36 +243.0Transportation 577.2 25 994.6 34 –42.0Utilities 1,131.3 143 1,779.4 191 –36.4General Purpose 2,359.0 117 2,315.5 165 +1.9Tax-Exempt 7,952.3 565 10,638.8 788 –25.3Taxable 750.7 50 842.0 70 –10.8Minimum -Tax 357.1 10 322.7 5 +10.7New-Money 6,088.5 460 5,841.3 505 +4.2Refunding 1,820.4 114 4,143.9 259 –56.1Combined 1151.2 51 1,818.4 99 –36.7Negotiated 6,359.2 375 8,979.3 576 –29.2Competitive 2,700.6 250 2,824.6 287 –4.4Private Placements 0.0 0 0.0 0 n.m.Revenue 4,512.7 205 5,326.8 225 –15.3General Obligation 4,546.4 420 6,476.7 638 –29.8Fixed Rate 8,914.1 613 11,732.5 841 –24.0Variable Rate (Short Put) 0.0 0 0.0 0 n.m.Zero Coupon 145.8 12 71.0 22 +105.3Linked Rate 0.0 0 0.0 0 n.m.Convertible 0.0 0 0.0 0 n.m.State Governments 263.1 2 0.0 0 n.m.State Agencies 1,085.2 20 1,268.1 25 –14.4Counties & Parishes 596.1 34 536.7 30 +11.1Cities & Towns 2,303.4 140 2,460.3 184 –6.4District 3,425.8 356 5,566.3 521 –38.5Local Authorities 1,080.4 64 1,810.0 96 –40.3Colleges & Universities 305.8 9 162.6 7 +88.1Direct Issuer 0.0 0 0.0 0 n.m.Bank Qualified 1,431.5 286 2,227.6 433 –35.7Build America Bonds 0.0 0 0.0 0 n.m.Qualified Sch Construction 0.0 0 110.9 7 –100.0Other Stimulus Program 0.0 0 5.6 2 –100.0

Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

Largest Insured IssuesDate Issuer Amt ($mill) Manager(s)Feb-13 PA Commonwealth Financing Auth $1,487.2 Jefferies LLC/Morgan StanleyMay-16 Pennsylvania (State), GOs, (cpt) 1,247.0 BA Merrill LynchJun-5 California Municipal Fin Auth, (amt) 1,181.5 BA Merrill Lynch/CitiMar-6 Oklahoma Dev Finance Auth, (tex/te) 1,162.3 BA Merrill Lynch/CitiMay-10 NYS Dorm Authority 585.2 Raymond JamesMay-17 Chicago City BOE, GOs, (ref) 562.3 Loop Capital Mkts/J P MorganMar-7 Arlington City-Texas 465.4 CitiJun-6 Kentucky St Property & Bldg Comm, (nm/ref) 280.8 CitiMar-22 Philadelphia SD (State), GOs 255.0 BA Merrill LynchFeb-21 Utah Transit Authority, (nm/ref) 199.3 Wells Fargo & CoKey to abbreviations: GOs – general obligation bonds; nm – new-money; ref – refunding. Source: Thomson Reuters (Jul. 11)

Bond Insurer RankingsFirst Half 2018 - Ranked by Insured Amount

Rank Firm Volume Market Share Issues 1 AGM formerly FSA Inc $4,899.9 54.1 225 2 Build America Mutual (BAM) 3,922.4 43.3 343 3 Municipal Assurance Corp (MAC) 232.2 2.6 58 - National Public Fin Guarantee - - -This is Thomson Reuters’s “AT10” league table. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Each firm is credited with the amount it insured within the issue. Source: Thomson Reuters (Jul. 11)

midyear review

The municipal bond insurance indus-try ended the first half of the year down in terms of par amount insured but the penetration rate climbed from the start of the year.

Muni bond deals wrapped with in-surance thus far in 2018 have totaled $9.06 billion in 625 issues, down from $11.80 billion in 863 deals – a 23.2% decrease, according to data from Thom-son Reuters.

Bond insurance industry penetration edged up to 5.63% in the second quarter from 5.59% at the end of the first quar-ter, to end the first half at 5.62%. That is an improvement from the 5.29% pen-etration rate the insurers had at the end of 2017. That occurred while interest rates remained low and credit spreads reached the tightest levels since the fi-nancial crisis.

Direct new business production was constrained during the first half by lack of new-issue supply, due in part to lower refunding volume caused largely by the elimination of advanced refundings and the rush to market of issuance before year-end in anticipation of potential tax law changes.

New-money issuance has actually ris-en from last year’s level, and the impact of tax reform on refunding levels was less severe in the second quarter than in the first. While second-quarter overall market volume was down almost 7% compared with last year’s second quar-ter, it was up 52% from the first quarter of this year.

Assured wrapped $5.13 billion of par value in 283 transactions in the first half of 2018, according to data from Thomson Reuters. That compares with $7.03 billion in 439 deals a year earlier. The figures include Assured’s subsidiary Municipal Assurance Corp.

“Assured Guaranty’s results were very strong in the first half of 2018,” said Robert Tucker, senior managing director of communications and inves-tor relations for Assured. “The present value of our new business production, or PVP, totaled $515 million, which is higher than any full year since 2009, largely because on June 1st Assured Guaranty assumed substantially all the exposure of Syncora Guarantee Inc. The transaction added more than $12 billion of assumed and reassumed par to our insured portfolio and the related unearned premiums further increased our claims-paying resources.”

Assured wrapped $2.24 billion for a 62% market share in the first quarter and $2.88 billion and 53% market share for the second quarter, resulting in a market share of 56.7% for the first half.

“Apart from the Syncora transaction, Assured Guaranty continues to lead the municipal bond insurance market, in-suring 57% of new-issue insured par sold during the first half of 2018,”said Tucker. “Our strategy has been to focus on transactions that provided compara-

tively better returns over the longer term and take advantage of our competitive position in insuring large transactions that appeal to institutional investors.”

He noted that through June 30, As-sured was selected to insure $50 mil-lion or more of par on 21 different transactions, including seven where it insured $100 million or more of par. Those seven transactions represented approximately $1.6 billion of the $5.4 billion Assured insured across our 418 primary-market transactions and sec-ondary-market policies sold in the first half of the year.

“With $12.2 billion in claims-pay-ing resources, Assured Guaranty is po-sitioned to succeed,” said Tucker. “In June, S&P Global Ratings affirmed the AA financial strength ratings for all the principal Assured Guaranty insurance subsidiaries, including AGM, MAC and AGC, all with stable outlooks and we estimate that, under S&P’s capital ad-equacy model as of year-end 2017, we have $2.8 billion of capital in excess of S&P’s AAA requirement.”

In mid July, KBRA reaffirmed the AA-plus stable rating it assigns to MAC. KBRA’s new report reiterated that MAC can withstand a triple-A level of KBRA stress losses, “with a comfort-able balance remaining.”

Build America Mutual finished the first six months of the year with a par amount insured of $3.92 billion in 343 transactions or 43.3% market share. That compares to the $4.17 billion over 355 deals or 35.3% market share during the first half of 2017.

“Utilization of insurance is accelerat-ing in 2018. Higher yields and a greater percentage of longer-term, new-money issues in the market have meant greater opportunities for issuers to generate sav-ings by adding insurance to their sales,” said Scott Richbourg, BAM’s head of public finance. “We particularly saw that in the use of insurance on several larger primary market issues in the sec-ond quarter, including a $91 million sale by the City of New Britain, Connecticut and $100 million of Shreveport, Louisi-ana, water and sewer bonds.”

BAM wrapped $1.39 billion in the first quarter or 38% market share and for the second quarter, accumulated $2.53 billion or 47% market share. BAM’s secondary market activity also grew compared with 2017.

“Reaching $50 billion par insured was a significant milestone,” said Grant Dewey, who joined BAM as head of municipal capital markets in March, after serving as a managing director in institutional sales at Citi.

“As BAM’s portfolio grows, larger institutional investors are identifying more ways they can utilize insurance to manage their overall portfolio ex-posures, which has translated both to strong demand for larger BAM-insured new issues, and growth in direct pur-chases of secondary market insurance policies,” Dewey said. q

Bond Insurance Penetration Rises Amid Issuance Decline

By AAron WeitzmAn

005_BB08201801 5 8/17/2018 4:12:31 PM


Short-Term Note Sales: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

TOTAL $15,959.0 1,029 $20,926.1 1,112 –23.7%

January 2,084.6 112 3,070.6 127 –32.1

February 2,196.5 110 1,857.3 137 +18.3

March 1,667.8 141 1,661.2 148 +0.4

April 1,040.6 124 1,181.0 135 –11.9

May 2,142.3 193 4,009.1 174 –46.6

June 6,827.2 349 9,146.9 391 –25.4

First Quarter 5,948.9 363 6,589.1 412 –9.7

Second Quarter 10,010.0 666 14,337.0 700 –30.2

Development 91.7 12 122.9 12 –25.4

Education 4,328.3 273 4,332.5 327 –0.1

Electric Power 23.4 9 14.8 6 +58.1

Environmental Facilities 4.4 1 3.5 3 +25.7

Health Care 0.1 1 409.4 3 –100.0

Housing 5.0 2 15.8 2 –68.4

Public Facilities 74.5 28 111.4 33 –33.1

Transportation 481.9 40 2,389.5 40 –79.8

Utilities 377.9 44 3,500.5 65 –89.2

General Purpose 10,571.8 619 10,025.6 621 +5.4

Tax-Exempt 15,286.2 967 19,010.6 1,020 –19.6

Taxable 672.2 61 1,701.7 87 –60.5

Minimum Tax 0.6 1 213.8 5 –99.7

New-Money 15,714.1 1,014 20,805.0 1,087 –24.5

Refunding 242.4 13 108.6 18 +123.2

Combined 2.5 2 12.5 7 –80.0

Negotiated 4,072.2 159 8,915.3 188 –54.3

Competitive 11,120.6 836 10,192.5 893 +9.1

Private Placements 766.1 34 1,818.3 31 –57.9

Revenue 750.2 23 3,237.0 28 –76.8

General Obligation 15,208.8 1,006 17,689.1 1,084 –14.0

Fixed-Rate 14,685.0 1,021 15,826.4 1,088 –7.2

Variable-Rate (Short Put) 1,125.0 5 5,097.0 23 –77.9

Linked-Rate 147.4 1 0.0 0 n.m.

Zero-Coupon 1.6 2 2.7 1 –40.7

Bond Insurance 3.3 3 0.0 0 n.m.

Letters of Credit 450.0 3 2,145.0 13 –79.0

Standby Purch Agreements 75.0 1 0.0 0 n.m.

Insured Mortgages 0.0 0 11.8 1 –100.0

Guaranties 199.1 26 23.5 12 +747.2

State Governments 2,199.5 8 1,104.4 6 +99.2

State Agencies 219.5 10 2,864.4 23 –92.3

Counties & Parishes 2,882.1 51 3,411.5 58 –15.5

Cities & Towns 6,520.9 653 6,690.1 665 –2.5

Districts 3,416.5 270 4,552.3 315 –25.0

Local Authorities 719.9 35 2,223.1 42 –67.6

Colleges & Universities 0.0 0 80.0 2 –100.0

Direct Issuers 0.7 2 0.2 1 +250.0

Co-Operative Utilities 0.0 0 0.0 0 n.m.

Bank-Qualified 1,726.4 549 1,908.0 599 –9.5

Build America Bonds 0.0 0 0.0 0 n.m.

Qualified Sch Construction 0.0 0 0.0 0 n.m.

Other Stimulus 0.0 0 0.0 0 n.m.

Notes: Private placements and municipal forwards are included, but short-term notes and remarketings are excluded. n.m. - not meaningful.

Source: Thomson Reuters (Jul. 11)

midyear review

The decreasing need for temporary cash flow among state and local mu-nicipalities prompted a 23.7% decline in the volume of short term notes in the first half, according to municipal analysts.

Total volume between January and June fell to $15.95 billion among 1,029 issues down from $20.92 billion among 1,112 deals in 2017, according to new data provided by Thomson Reuters.

“One can correlate short-term fi-nancing with general economic behav-ior,” Phil Fischer, head of municipal research at Bank of America Merrill Lynch said. “Positive economic growth should induce lower short-term financ-ing.”

Municipal notes are short-term, fixed-rate, tax-exempt debt securities that typically mature in 12 months, and are issued to raise capital in anticipa-tion of tax receipts, revenue, or pro-ceeds from a bond issue. Three types of municipal notes are bond anticipation notes, tax anticipation notes, and reve-nue anticipation notes.

“There is a fundamental economic reason for short-term notes,” Fischer explained, noting that the securities allow municipalities to smooth out cash flows before tax revenues are received at certain times of the year.

However, municipalities had less need for borrowing to bridge any gaps in cash flow during the first half of 2018 -- and therefore curtailed their is-suance of short-term notes, Fischer and Yingchen Li, senior municipal analyst at BAML said in an interview.

For example, revenue issuance -- which was already under $1 billion -- fell by 76.8% to $750.2 million in 23 issues, compared with $3.23 billion among 28 issues in the prior first half, the data showed.

General obligation bonds declined by 14% to $15.20 billion among 1,006 deals, versus $17.68 billion among 1,084 issues.

Some individual sectors experienced severe declines in issuance, the data showed.

For example, issuance of short term notes by colleges and universities fell to zero in the first half, compared with $80 million in two issues previously.

Meanwhile, there was a 92.3% de-cline among state agencies to $219.5 million in 10 issues, down from $2.862 billion among 24 issues.

The utilities sector experienced the largest decrease in short-term note issu-ance as it fell 89.2% to $377.9 million in 44 issues, compared with $3.5 billion among 65 issues in 2017’s first half.

Transportation, meanwhile, fell 79.8% to $481.9 million among 40 is-sues, down from $2.389 billion in 40 issues the prior year.

Issuance also fell among local au-thorities, which issued 67.6% less at $719.9 million in 35 issues, from

$2.223 billion among 42 deals.From January to June, municipali-

ties issued the least amount of notes in May, when issuance dropped by 46.6% to $2.142 billion among 193 issues, compared with $4.009 billion in 174 issues in the first half of 2017.

By contrast, February saw a modest 18.3% increase in issuance as notes grew to $2.196 billion among 110 is-sues, versus $1.857 billion among 137 issues in 2017’s first quarter.

Issuance fell 30.2% to $10.01 billion among 666 issues in the second quar-ter, and only 9.7% in the first half to $14.337 billion among 700 issues.

Only few sectors saw growth of short-term note issues in the first half.

Electric power and environmental facilities increased 58.1% and 25.7%, respectively. Electric power grew to $23.4 million among nine issues, up from $14.8 million among six issues, while environmental facilities grew to $4.4 million in a single deal, up from $3.5 million in three issues.

State governments grew by 99.2% to $2.199 billion among eight issues, compared with $1.104 billion in six issues.

Fischer said decreasing short-term is-suance has two impacts for the market.

On one hand, he said, fewer short-term instruments increases the de-mand for synthetic paper, such as vari-able-rate demand notes, but, on the other hand, it demonstrates continued credit strength on the part of the mu-nicipalities.

Meanwhile, although tax reform didn’t have a direct impact on the short-term note market, the presence of it caused some residual effects, the analysts noted.

“Last year the economy was not very different from the past few years,” Li said. “But, this year fiscal policy kicked in following tax reform.”

“While the change in tax rates after tax reform has not affected the demand for short-term notes, the quantity fell as the macro effects of the tax reform act accelerated borrowers’ economic activity and caused states to be less dependent on borrowing to smooth out cash flows,” Fischer said.

Fischer noted that this year’s $15.9 billion is a far cry from nearly a decade ago when the note volume hovered be-tween $50 billion and $60 billion in an era of increased borrowing needs and times of less economic buoyancy.

By contrast, the analysts said short-term note issuance has been trending down in recent years amid continued austerity, as well as an improving eco-nomic outlook and better revenue ex-pectations among municipalities.

“Our economists are looking for strong economic activity this year and we are anticipating a continuation of this trend,” Fischer said, noting expec-tations of increased cash at the federal and state level supported by gross do-mestic product of 3%. q

Why Issuance of Short-Term Notes Fell in the First Half

By Christine AlBAno

006_BB08201801 6 8/17/2018 4:12:32 PM


DevelopmentSenior Managers: First Half 2018

Manager Amt ($mill) 1 Stifel Nicolaus $621.6 2 Citi 194.4 3 FMSbonds 184.6 4 BA Merrill Lynch 183.6 5 MBS Capital Mkt 159.1 6 Goldman Sachs 147.3 7 Piper Jaffray 102.2 8 Stern Brothers 98.2 9 J P Morgan 95.6 10 Brandis Tallman 84.0Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

EducationFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 PFM Financial Adv $5,450.5 2 Hilltop Securities 2,844.0 3 Swap Financial 2,059.0 4 Acacia Financial 1,359.8 5 Public Resources Adv 1,359.4 6 Piper Jaffray 1,187.5 7 Ehlers & Associates 1,161.9 8 RBC Capital Mkts 1,032.0 9 KNN Public Fin 987.9 10 Samco Capital Mkts 934.6 Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Education: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $45,800.7 1,862 $64,384.8 2,473 –28.9%First Quarter 19,970.7 772 32,364.0 1,101 –38.3Second Quarter 25,829.9 1,090 32,020.8 1,372 –19.3K-12 Education 31,831.3 1,590 40,806.6 2,102 –22.0Higher Education 12,905.5 234 22,292.9 332 –42.1Student Loans 750.9 8 1,018.2 9 –26.3Other Education 313.0 30 267.1 30 +17.2Tax-Exempt 42,109.4 1,633 57,773.5 2,263 –27.1Taxable 3,134.4 223 6,011.4 201 –47.9Minimum-Tax 556.9 6 599.9 9 –7.2New-Money 36,305.6 1,548 33,227.9 1,569 +9.3Refunding 5,291.6 229 15,372.2 689 –65.6Combined 4,203.5 85 15,784.8 215 –73.4Negotiated 32,539.4 939 46,568.3 1,368 –30.1Competitive 11,963.5 812 15,462.7 935 –22.6Private Placements 1,297.8 111 2,353.8 170 –44.9Revenue 17,815.6 484 24,460.5 584 –27.2General Obligation 27,985.0 1,378 39,924.3 1,889 –29.9Fixed Rate 44,390.6 1,824 61,422.1 2,385 –27.7Variable Rate (Short Put) 114.0 5 929.5 22 –87.7Variable Rate (Long/No Put) 319.3 8 560.9 6 –43.1Zero Coupon 349.6 19 634.6 49 –44.9Linked Rate 567.3 5 592.3 7 –4.2Convertible 59.8 1 245.5 4 –75.6Bond Insurance 3,313.7 261 5,285.2 382 –37.3Letter of Credit 0.0 0 19.0 1 –100.0Standby Purchase Agreements 1.3 1 0.0 0 n.m.Insured Mortgages 0.0 0 0.0 0 n.m.Guaranties 13,786.6 559 16,699.0 649 –17.4Other Enhancements 0.0 0 0.0 0 n.m.State Governments 652.1 9 1,384.0 12 –52.9State Agencies 8,164.1 144 9,981.4 209 –18.2Counties & Parishes 916.4 34 816.4 18 +12.2Cities & Towns 351.8 11 357.6 22 –1.6District 26,440.9 1,454 37,501.0 1,960 –29.5Local Authorities 2,949.8 113 4,099.0 137 –28.0Colleges & Universities 6,238.3 91 10,139.5 113 –38.5Direct Issuer 87.3 6 106.1 2 –17.7Bank Qualified 3,007.5 725 4,752.4 1,074 –36.7Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

Development: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $3,218.7 190 $8,368.9 193 –61.5%First Quarter 1,774.5 82 2,328.8 101 –23.8Second Quarter 1,444.2 108 6,040.1 92 –76.1Economic Development 2,460.4 169 7,374.0 175 –66.6Industrial Development 735.7 20 986.4 17 –25.4Office Building 22.6 1 8.5 1 +165.9Tax-Exempt 2,043.5 136 6,145.9 134 –66.8Taxable 896.7 50 1,958.0 58 –54.2Minimum-Tax 278.4 4 265.0 1 +5.1New-Money 2,071.7 132 3,771.9 96 –45.1Refunding 854.5 45 4,075.0 74 –79.0Combined 292.5 13 522.1 23 –44.0Negotiated 2,264.4 132 6,907.8 137 –67.2Competitive 244.2 20 294.1 17 –17.0Private Placements 710.2 38 1,167.0 39 –39.1Revenue 2,990.0 162 8,119.0 167 –63.2General Obligation 228.7 28 249.9 26 –8.5Fixed Rate 3,133.3 184 8,280.3 189 –62.2Variable Rate (Short Put) 85.4 6 56.8 2 +50.4Variable Rate (Long/No Put) 0.0 0 0.0 0 n.m.Zero-Coupon 0.0 0 0.0 0 n.m.Linked Rate 0.0 0 31.9 2 –100.0Convertible 0.0 0 0.0 0 n.m.Bond Insurance 312.9 28 793.8 39 –60.6Letter of Credit 17.2 2 0.0 0 n.m.Guaranties 0.0 0 0.0 0 n.m.Other Enhancements 0.0 0 0.0 0 n.m.State Governments 14.3 1 84.6 2 –83.1State Agencies 495.3 14 2,157.6 21 n.m.Counties & Parishes 341.3 12 275.5 7 –77.0Cities & Towns 513.4 52 826.9 41 –37.9District 574.5 52 347.2 32 +65.5Local Authorities 1,226.5 58 4,656.3 89 –73.7Colleges & Universities 0.0 0 0.0 0 n.m.Direct Issuer 0.0 0 0.0 0 n.m.Tibal Government 53.5 1 20.8 1 +157.2Cooperative Utilities 0.0 0 0.0 0 n.m.Bank Qualified 52.9 15 87.0 17 –39.2Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 19.7 1 –100.0Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

DevelopmentFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 PFM Financial Adv $475.6 2 Urban Futures 193.9 3 Fieldman Rolapp 191.2 4 CSG Advisors 186.9 5 Del Rio Adv 93.5 6 Hilltop Securities 86.9 7 Davenport & Co 74.1 8 Umbaugh 51.3 9 Baker Group 49.2 10 C M de Crinis 37.1Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

EducationSenior Managers: First Half 2018

Manager Amt ($mill) 1 BA Merrill Lynch $6,498.4 2 RBC Capital Mkts 3,797.0 3 Raymond James 3,318.0 4 Citi 3,226.9 5 J P Morgan 2,892.1 6 Wells Fargo 2,861.2 7 Piper Jaffray 2,670.4 8 Stifel Nicolaus 2,635.0 9 Robert W Baird 2,074.3 10 Morgan Stanley 1,800.7Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Development IssuesDate Issuer Amt ($mill) Manager(s)Jun-6 Connecticut (State), GOs $492.1 BA Merrill LynchMar-16 Oregon Business Development Comm, (tax/amt) 245.5 Goldman Sachs/Stern BrothersJan-4 Anaheim Successor Redev Agcy, (tax/te) (ref) 112.2 Stifel Nicolaus & Co IncMay-8 Virginia Resources Auth (VRA), (tax/te) (nm/ref) 106.3 BA Merrill LynchApr-18 Allentown Neighborhood Imp Zone Dev Au 99.7 CitiMar-15 Village Community Development Dt #12 94.7 CitiFeb-6 Orange Co-California 77.0 Stifel Nicolaus & Co IncMay-22 Racine Co-Wisconsin, (tax) (cpt) 68.0 J P MorganJan-17 Oklahoma City Economic Dev Trust, (tax) 67.4 BA Merrill LynchJan-9 Kansas City Land Clear Redev Au 63.4 Stifel NicolausKey to abbreviations: amt – alternative minimum tax; nm – new-money; ref – refunding; tax – taxable. Source: Thomson Reuters (Jul. 11)

Largest Education IssuesDate Issuer Amt ($mill) Manager(s)Feb-21 Los Angeles USD, GOs $1,350.0 BA Merrill Lynch/Goldman SachsMay-22 Regents of the Univ of California, (tax) 1,227.7 BA Merrill Lynch/Ramirez & Co IncMar-14 NYC Transitional Finance Auth, (tax/te) (cpt) (nm/ref) 1,075.7 BA Merrill LynchMay-23 Regents of the Univ of California, (tax) 831.3 BA Merrill Lynch/Raymond JamesMay-4 NYS Dorm Authority, (tax/te) 592.6 Wells Fargo/Goldman SachsMay-10 NYS Dorm Authority 585.2 Raymond JamesMay-17 Chicago City BOE 562.3 Loop Capital Mkts/J P MorganMar-28 Connecticut (State), GOs 526.4 Loop Capital MktsApr-17 Montgomery Co Hghr Ed & Hlth Au, (tax/te) (nm/ref) 491.4 BA Merrill LynchJan-23 Maryland Stadium Authority 426.4 BA Merrill Lynch/CitiKey to abbreviations: nm – new money; ref – refunding; tax – taxable; te – tax exempt. Source: Thomson Reuters (Jul. 11)

midyear review

007_BB08201801 7 8/17/2018 4:12:33 PM


Electric PowerSenior Managers: First Half 2018

Manager Amt ($mill) 1 BA Merrill Lynch $1,176.7 2 J P Morgan 1,019.1 3 Siebert Cisneros Shank 354.4 4 Citi 268.5 5 Goldman Sachs 156.2 6 Morgan Stanley 105.0 7 RBC Capital Mkts 98.9 8 Piper Jaffray 71.2 9 Barclays 47.2 10 Wells Fargo 32.0Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Electric Power: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $3,491.8 54 $3,733.3 46 –6.5%First Quarter 1,182.5 21 1,812.2 25 –34.7

Second Quarter 2,309.3 33 1,921.0 21 +20.2

Tax-Exempt 3,428.6 46 3,649.7 42 –6.1

Taxable 63.2 8 83.5 4 –24.3

Minimum-Tax 0.0 0 0.0 0 n.m.

New-Money 615.5 22 1,273.6 17 –51.7

Refunding 2,356.3 25 1,361.7 24 +73.0

Combined 520.0 7 1,098.0 5 –52.6

Negotiated 3,147.7 42 3,575.7 38 –12.0

Competitive 309.2 7 55.6 6 +456.1

Private Placements 35.0 5 102.0 2 –65.7

Revenue 3,473.8 52 3,650.5 41 –4.8

General Obligation 18.0 2 82.8 5 –78.3

Fixed Rate 3,225.9 51 3,633.3 45 –11.2

Variable Rate (Short Put) 0.0 0 100.0 1 –100.0

Variable Rate (Long/No Put) 151.3 2 0.0 0 n.m.

Zero Coupon 0.0 0 0.0 0 n.m.

Linked Rate 114.6 1 0.0 0 n.m.

Bond Insurance 168.5 7 60.9 7 +176.7

Letter of Credit 0.0 0 0.0 0 n.m.

Guaranties 0.0 0 0.0 0 n.m.

State Governments 0.0 0 64.8 2 –100.0

State Agencies 251.3 7 122.6 2 +105.0

Counties & Parishes 0.0 0 0.0 0 n.m.

Cities & Towns 724.8 23 1,088.8 23 –33.4

District 191.6 5 91.2 3 +110.1

Local Authorities 1,290.4 13 1,778.1 13 –27.4

Direct Issuer 1,033.7 6 587.9 3 +75.8

Cooperative Utilities 0.0 0 0.0 0 n.m.

Bank Qualified 44.7 13 57.3 16 –22.0

Qualified Sch Construction 0.0 0 0.0 0 n.m.

Other Stimulus Program 0.0 0 0.0 0 n.m.


Electric PowerFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 PFM Financial Adv $1,874.0 2 Public Resources Adv 354.4 3 Specialized Pub Fin 291.4 4 Piper Jaffray 263.8 5 George K Baum 105.2 6 Montague DeRose 98.9 7 Dougherty & Co 82.4 8 Dunlap & Associates 57.8 9 Fieldman Rolapp 41.6 10 JJB Hilliard WL Lyons 37.0Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Electric Power IssuesDate Issuer Amt ($mill) Manager(s)May-9 Energy Northwest, (tax) (ref) $633.4 J P Morgan/BA Merrill LynchMar-27 Los Angeles Dept of Wtr & Power, (nm/ref) 354.4 Siebert Cisneros ShankFeb-22 Energy Northwest, (ref) 321.9 BA Merrill Lynch/J P MorganJun-6 Lower Colorado River Authority (LCRA), (ref) 291.4 BA Merrill LynchJun-5 Seattle City-Washington, (cpt) 263.8 BA Merrill LynchMay-3 So California Pub Pwr Au (SCPPA), (ref) 228.9 J P MorganJun-6 Sacramento MUD (SMUD), (ref) 165.5 Citi/BA Merrill LynchJun-5 Lincoln City-Nebraska, (nm/ref) 121.2 BA Merrill LynchJun-20 Arkansas River Power Auth, (tax) (ref) 119.3 Goldman SachsFeb-22 Intermountain Power Agency, (tax) (ref) 105.2 BA Merrill LynchKey to abbreviations: nm – new-money; ref – refunding; tax – taxable; te – tax-exempt. Source: Thomson Reuters (Jul. 11)

midyear review

EnvironmentalSenior Managers: First Half 2018

Manager Amt ($mill) 1 Goldman Sachs $114.0 2 J P Morgan 73.5 3 BA Merrill Lynch 45.0 4 Stifel Nicolaus 25.8 5 Raymond James 17.7 6 NW Capital Mkts 14.9 7 Mesirow Financial 14.5 8 The Frazer Lanier 10.5 9 Northland Securities 1.2 10 Hutchinson Shockey 1.1Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Environmental Facilities: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $318.1 11 $921.7 25 –65.5%First Quarter 45.5 4 431.0 11 –89.4Second Quarter 272.6 7 490.7 14 –44.4Pollution Control 230.9 4 658.3 11 –64.9Solid Waste Disposal 87.2 7 263.4 14 –66.9Recycling 0.0 0 0.0 0 n.m.Tax-Exempt 213.5 8 452.2 14 –52.8Taxable 0.0 0 124.8 6 –100.0Minimum-Tax 104.6 3 344.7 5 –69.7New-Money 89.9 7 597.4 15 –85.0Refunding 213.2 3 321.5 9 –33.7Combined 14.9 1 2.9 1 +413.8Negotiated 315.8 9 727.5 17 –56.6Competitive 2.3 2 63.0 4 –96.3Private Placements 0.0 0 131.2 4 –100.0Revenue 290.1 8 890.5 24 –67.4General Obligation 28.0 3 31.2 1 –10.3Fixed Rate 189.1 7 664.2 20 –71.5Variable Rate (Short Put) 10.5 1 0.0 0 n.m.Variable Rate (Long/No Put) 118.5 3 257.5 5 –54.0Linked Rate 0.0 0 0.0 0 n.m.Bond Insurance 0.0 0 6.0 1 –100.0Letter of Credit 10.5 1 0.0 0 n.m.Guaranties 15.5 2 0.0 0 n.m.Other Enhancement 0.0 0 0.0 0 n.m.State Governments 0.0 0 0.0 0 n.m.State Agencies 73.2 4 270.6 3 –72.9Counties & Parishes 1.1 1 217.7 7 –99.5Cities & Towns 27.0 2 72.7 4 –62.9District 0.0 0 48.0 2 –100.0Local Authorities 216.8 4 312.7 9 –30.7Direct Issuer 0.0 0 0.0 0 n.m.Bank Qualified 1.2 1 1.3 1 –7.7Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 51.5 1 –100.0


EnvironmentalFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Hilltop Securities $17.7 2 CTBH Partners 15.0 3 Powell Capital Mkts 14.9 4 Susquehanna Group Adv 14.5 5 Springsted 1.2 6 Ehlers & Associates 1.1

Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Environmental Facility IssuesDate Issuer Amt ($mill) Manager(s)Apr-25 Putnam Co Dev Auth, (ref) $114.0 Goldman Sachs & CoJun-28 Harrison Co County Commission, (amt) (ref) 73.5 J P Morgan Securities LLCMay-23 Virginia Small Business Fin Auth, (amt) 30.0 BA Merrill LynchApr-10 Montgomery City-Alabama, GOs, (ref) 25.8 Stifel Nicolaus & Co IncApr-10 Rhode Island Infrastructure Bank 17.7 Raymond JamesMar-27 Maine Finance Authority 15.0 BA Merrill LynchJan-31 Passaic Co Utilities Authority, (nm/ref) 14.9 NW CapitalMar-15 Clinton Co Solid Waste Authority 14.5 Mesirow Financial IncMay-24 Michigan Strategic Fund 10.5 The Frazer Lanier Company IncApr-20 Fergus Falls City-Minnesota, GOs, (cpt) 1.2 Northland SecuritiesKey to abbreviations: amt – alternative minimum tax; GOs – general obligation bonds; nm – new-money; ref – refunding; te – tax-exempt. ource: Thomson Reuters (Jul. 11)

008_BB08201801 8 8/17/2018 4:12:33 PM


General PurposeFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Public Resources Adv $11,813.0 2 PFM Financial Adv 10,028.6 3 Hilltop Securities 2,336.4 4 Acacia Fin Group 1,971.6 5 Lamont Financial 896.6 6 Phoenix Cap Partners 794.5 7 Davenport & Co 680.7 8 Capital Mkts Adv 644.7 9 Sustainable Cap Adv 623.5 10 Piper Jaffray 551.1Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

General Purpose: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $44,198.2 1,229 $46,052.3 1,444 –4.0%First Quarter 17,273.9 457 22,911.6 585 –24.6Second Quarter 26,924.3 772 23,140.7 859 +16.4General Purpose 44,198.2 1,229 46,049.9 1,442 –4.0Agriculture 0.0 0 0.0 0 n.m.Veterans 0.0 0 2.4 2 –100.0Tax-Exempt 38,619.0 1,106 41,684.7 1,312 –7.4Taxable 5,521.9 121 4,329.2 129 +27.6Minimum-Tax 57.4 2 38.4 3 +49.5New-Money 29,631.6 981 20,482.9 920 +44.7Refunding 4,918.5 180 14,117.8 381 –65.2Combined 9,648.1 68 11,451.6 143 –15.7Negotiated 21,939.2 401 24,188.8 536 –9.3Competitive 21,056.6 725 19,201.3 768 +9.7Private Placements 1,202.4 103 2,662.2 140 –54.8Revenue 15,147.0 217 15,220.6 238 –0.5General Obligation 29,051.2 1,012 30,831.7 1,206 –5.8Fixed Rate 43,553.5 1,214 44,939.0 1,420 –3.1Variable Rate (Short Put) 411.5 8 602.7 13 –31.7Variable Rate (Long/No Put) 0.0 0 6.2 1 –100.0Zero Coupon 0.3 1 0.0 0 n.m.Linked Rate 229.7 5 504.4 10 –54.5Convertible 3.2 1 0.0 0 n.m.Bond Insurance 2,524.6 117 2,376.9 165 +6.2Letter of Credit 100.0 1 0.0 0 n.m.Standby Purchase Agreements 0.0 0 60.0 1 –100.0Insured Mortgages 0.0 0 4.7 1 –100.0Guaranties 225.9 15 149.3 7 +51.3State Governments 13,001.2 49 13,665.7 55 –4.9State Agencies 11,577.9 56 10,219.0 53 +13.3Counties & Parishes 5,291.1 165 5,714.9 194 –7.4Cities & Towns 12,233.8 828 13,254.3 1,021 –7.7District 811.7 74 1,335.2 68 –39.2Local Authorities 1,238.3 55 1,861.6 52 –33.5Colleges & Universities 0.0 0 1.5 1 –100.0Indian Tribal 0.0 0 0.0 0 n.m.Direct Issuer 44.3 2 0.0 0 n.m.Tribal Government 0.0 0 0.0 0 n.m.Cooperative Utilities 0.0 0 0.0 0 n.m.Bank Qualified 1,873.2 481 2,581.7 629 –27.4Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 4.3 1 5.2 2 –17.3Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

General PurposeSenior Managers: First Half 2018

Manager Amt ($mill) 1 Citi $8,061.1 2 BA Merrill Lynch 7,250.4 3 Jefferies 5,618.8 4 Morgan Stanley 4,624.4 5 J P Morgan 3,171.0 6 Raymond James 1,812.3 7 Goldman Sachs 1,685.9 8 Robert W Baird 1,283.7 9 Wells Fargo 1,086.1 10 RBC Capital Mkts 760.1Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest General Purpose IssuesDate Issuer Amt ($mill) Manager(s)Apr-4 NJ Tobacco Settlement Fin Corp, (nm/ref) $3,146.7 Jefferies LLC/CitiMar-6 California (State), GOs, (tax/te) (nm/ref) 2,181.3 Various firmsJun-20 Golden State Tobacco Sec Corp 1,674.7 Citi/Jefferies LLCFeb-13 PA Commonwealth Financing Auth 1,487.2 Jefferies LLC/Morgan StanleyMar-13 NYS Dorm Authority, (tax/te) (cpt) 1,329.7 Wells Fargo & CoMay-16 Pennsylvania (State) 1,247.0 BA Merrill LynchJun-19 Georgia, GOs, (tax/te) (cpt) 1,228.6 J P MorganApr-11 New York City-New York, Gos, (tax/te) (cpt/neg) 1,100.0 J P MorganMay-15 NYC Transitional Finance Auth, (tax/te) (cpt) 1,100.0 UBS Financial Services IncFeb-22 New York City-New York, Gos, (tax/te) (cpt/neg) 950.0 Jefferies LLCKey to abbreviations: GOs – general obligation bonds; nm – new money; ref – refunding. Source: Thomson Reuters (Jul. 11)

midyear review

Health CareSenior Managers: First Half 2018

Manager Amt ($mill) 1 BA Merrill Lynch $2,425.8 2 Citi 1,223.4 3 J P Morgan 791.1 4 Morgan Stanley 713.6 5 Wells Fargo 608.8 6 Ziegler 574.1 7 Piper Jaffray 415.1 8 Siebert Cisneros 357.1 9 KeyBanc Cap Mkts 268.6 10 Barclays 254.8Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Health Care: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $10,287.3 141 $20,688.4 246 –50.3%First Quarter 4,152.7 42 7,615.3 113 –45.5Second Quarter 6,134.6 99 13,073.2 133 –53.1General Acute-Care Hosps 8,496.1 86 15,625.0 135 –45.6Single-SpecialityHospitals 66.5 3 955.5 13 –93.0Pediatric Hospitals 430.7 4 1,423.0 12 –69.7Hospitals Equipment Loans 0.0 0 0.0 0 n.m.General Medical 13.1 1 413.3 5 –96.8Continuing Care 1,040.0 34 2,117.4 65 –50.9Nursing Homes 55.8 4 46.0 7 +21.3Life Care/Retirement 185.2 9 108.4 9 +70.8Tax-Exempt 9,286.7 121 19,894.6 222 –53.3Taxable 1,000.6 20 793.8 24 +26.1Minimum-Tax 0.0 0 0.0 0 n.m.New-Money 7,265.2 85 8,040.4 119 –9.6Refunding 2,173.9 40 6,585.4 86 –67.0Combined 848.2 16 6,062.7 41 –86.0Negotiated 8,475.2 107 17,603.0 170 –51.9Competitive 64.0 3 200.9 8 –68.1Private Placements 1,748.1 31 2,884.5 68 –39.4Revenue 9,686.0 128 19,841.7 228 –51.2General Obligation 601.3 13 846.7 18 –29.0Fixed Rate 8,127.6 115 18,325.3 210 –55.6Variable Rate (Short Put) 1,484.6 13 1,146.2 20 +29.5Variable Rate (Long/No Put) 554.8 11 745.2 6 –25.6Zero Coupon 0.0 0 0.0 0 n.m.Linked Rate 120.2 2 471.8 10 –74.5Convertible 0.0 0 0.0 0 n.m.Bond Insurance 237.0 4 120.8 3 +96.2Letter of Credit 133.9 2 23.8 4 +462.6Standby Purchase Agreements 204.6 2 0.0 0 n.m.Insured Mortgages 187.2 2 39.5 2 +373.9Guaranties 0.0 0 9.4 2 –100.0State Governments 50.0 1 0.0 0 n.m.State Agencies 6,015.7 51 12,102.2 117 –50.3Counties & Parishes 564.4 11 1,825.8 15 –69.1Cities & Towns 318.0 12 737.7 26 –56.9District 553.1 12 614.6 15 –10.0Local Authorities 2,738.2 52 4,688.3 66 –41.6Colleges & Universities 32.7 1 667.4 6 –95.1Direct Issuer 0.0 0 52.5 1 –100.0Tribal Governments 15.3 1 0.0 0 n.m.Bank Qualified 13.2 2 75.7 17 –82.6Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

Health CareFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Ponder $1,488.9 2 KeyBanc Cap Mkts 1,162.3 3 PFM Financial Adv 763.6 4 Kaufman Hall 523.2 5 George K Baum 350.0 6 KNN Public Fin 346.3 7 Columbia Cap Mgmt 325.7 8 Hammond Hanlon 301.0 9 Raymond James 218.6 10 Hilltop Securities 199.3Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Health Care IssuesDate Issuer Amt ($mill) Manager(s)Mar-6 Oklahoma Dev Finance Auth, (tax/te) $1,162.3 BA Merrill Lynch/CitiMar-27 California Health Facs Fin Auth 619.0 Morgan StanleyMay-10 Greeneville Hlth & Ed Facs Bd 535.2 BA Merrill LynchJun-13 Massachusetts Dev Finance Agcy 432.7 CitiApr-4 Bexar Co Hospital Dt, GOs 283.6 Siebert Cisneros ShankJun-20 Colorado Health Facilities Auth 257.1 J P MorganJan-10 Illinois Finance Authority 223.6 J P Morgan/Goldman SachsJun-27 West Virginia Hospital Fin Auth 218.6 BA Merrill Lynch/Wells FargoApr-25 Missouri Hlth & Ed Facs Authority, (ref) 203.2 Various firmsJun-26 Utah Co-Utah 200.0 J P Morgan/Wells Fargoissues were for general acute-care hospitals. Key to abbreviations: nm – new money; ref – refunding; Source: Thomson Reuters (Jul. 11)

009_BB08201801 9 8/17/2018 4:12:34 PM


HousingFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 CSG Advisors $1,689.7 2 Caine Mitter 787.7 3 Lamont Financial 330.6 4 George K Baum 327.0 5 Acacia Financial 252.0 6 Hilltop Securities 244.6 7* Public Resources Adv 160.7 7* Omnicap Group 160.7 9 KNN Public Fin 120.0 10 Piper Jaffray 97.8Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Housing: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $9,345.1 253 $9,509.6 287 –1.7%First Quarter 2,517.6 76 3,600.6 121 –30.1Second Quarter 6,827.4 177 5,909.0 166 +15.5Single-Family 4,366.8 99 4,925.7 100 –11.3Multifamily 4,978.3 154 4,583.9 187 +8.6Tax-Exempt 7,168.5 207 6,654.7 217 +7.7Taxable 1,502.0 31 2,165.6 43 –30.6Minimum-Tax 674.6 15 689.4 27 –2.1New-Money 7,653.6 205 6,585.6 217 +16.2Refunding 741.6 25 1,637.8 49 –54.7Combined 949.9 23 1,286.2 21 –26.1Negotiated 7,076.7 175 7,891.1 211 –10.3Competitive 559.5 13 105.7 5 +429.3Private Placements 1,708.9 65 1,512.8 71 +13.0Revenue 7,857.2 227 8,838.8 273 –11.1General Obligation 1,487.9 26 670.8 14 +121.8Fixed Rate 7,183.7 179 7,040.2 202 +2.0Variable Rate (Short Put) 1,376.1 34 1,556.5 47 –11.6Variable Rate (Long/No Put) 517.6 33 328.2 27 +57.7Linked Rate 267.7 7 584.8 11 –54.2Bond Insurance 0.0 0 101.0 5 –100.0Letter of Credit 208.1 5 731.2 9 –71.5Standby Purchase Agreements 700.3 13 186.9 7 +274.7Insured Mortgages 437.5 19 1,138.5 46 –61.6Guaranties 0.0 0 0.0 0 n.m.State Governments 40.2 1 0.0 0 n.m.State Agencies 6,560.6 176 7,883.0 220 –16.8Counties & Parishes 241.6 2 26.5 2 +811.7Cities & Towns 568.4 14 140.1 7 +305.7District 3.5 1 0.0 0 n.m.Local Authorities 1,930.7 59 1,460.0 58 +32.2Colleges & Universities 0.0 0 0.0 0 n.m.Direct Issuer 0.0 0 0.0 0 n.m.Bank Qualified 7.6 2 16.4 3 –53.7Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.


HousingSenior Managers: First Half 2018

Manager Amt ($mill) 1 RBC Cap Mkts $1,739.9 2 BA Merrill Lynch 1,263.0 3 Morgan Stanley 1,036.4 4 J P Morgan 729.2 5 Citi 545.8 6 Wells Fargo 438.5 7 Barclays 396.2 8 Stifel Nicolaus 329.7 9 Raymond James 256.5 10 Jefferies 250.0Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Housing IssuesDate Issuer Amt ($mill) Manager(s)Jun-13 NYC Housing Dev Corp, (tax/te) $625.5 J P Morgan/Morgan StanleyJun-15 New Jersey Hsg & Mtg Fin Agency, (amt) 378.9 RBC Capital MarketsJun-13 Michigan St Housing Dev Auth, (amt) (ref) 328.1 BA Merrill LynchJun-27 Los Angeles City-California, GOs, (tax/te) (cpt) (ref) 321.3 PNC Capital MarketsJun-21 Texas Veterans Land Board, GOs 250.0 Jefferies LLCMar-15 Alameda Co-California, GOs, (tax) 240.0 BA Merrill LynchApr-5 NYC Housing Dev Corp, (tax/te) (ref) 232.1 J P MorganJun-22 NYS Housing Fin-Mortgage Agcy 201.2 CitiMar-9 Michigan St Housing Dev Auth 170.0 BarclaysFeb-28 NYS Housing Fin-Mortgage Agcy, (amt/te) (ref) 167.7 J P MorganKey to abbreviations: amt – alternative minimum tax; cpt – competitive; nm – new money; ref – refunding; tax – taxable; te – tax exempt. Source: Thomson Reuters (Jul. 11)

midyear review

Health care, development, and envi-ronmental facilities issuance all plum-meted by 50% or more in the first half of 2018 in what was generally a weak first half for overall municipal issu-ance.

Environmental facilities was down 66%, development was down 61%, and health care was down 50% in the first half, compared with an overall mu-nicipal issuance decline of 18%. All percentages are for dollars of par value unless otherwise stated and are com-parisons to the first half of 2017. All statistics are from Thomson Reuters.

The sectors with the biggest dollar value declines were education ($18.6 billion), health care ($10.3 billion), and development ($5.1 billion).

Just two of the 10 municipal bond sectors grew in the first half – public facilities by 15% and transportation 5%.

The sectors that were biggest by par value were education ($45.8 billion), general purpose ($44.2 billion), and transportation ($24.5 billion).

Two analysts said that the period was characterized as the aftermath of the end of 2017, during which some issuers had reacted to fears of changes to fed-eral taxation on municipal bonds.

The drops in environment and devel-opment issuance were due to govern-ments having pulled their bond sales into 2017 in fear of losing the ability to sell tax-exempt private activity bonds, said Bond Buyer Contributing Editor John Hallacy and Citi Municipal Strate-gist Jack Muller. There was a Congres-sional proposal in fall 2017. “Because they raced to issue debt in 2017, their pipelines were likely relatively dry in the beginning of 2018,” Muller said.

The reflux in health care issuance was also probably due to fears in 2017 of tax changes that might be coming to the sector in 2018, Hallacy said. This had led some issuers to sell in late 2017 rather than in early 2018. He said the reduction in mergers and acquisitions in 2018 also diminished the sector’s bond issuance.

Hallacy explained the 15% growth in the public facilities sector by saying that it is driven more by “basic needs” rather than outside factors.

As an explanation for the expansion of transportation in a weakening market Muller said, “There was something of a holding pattern on supply there in 2017 as some issuers wanted to wait and see if the White House would come through on its platform of affecting an infrastructure investment plan. Since the details of the initial framework were unclear, issuers may have been hesitant to issue debt for the first half of 2017 for fear of missing out on any potential soon-to-be-introduced incen-tives.

“Legislation for this never took shape, and it’s possible that by 2018

some of the infrastructure entities that were holding off on spending found that they could postpone maintenance no longer,” Muller said.

Besides these sector-wide shifts in the first half of 2018 there were also some unusual developments within sec-tors.

Whereas the education sector was down 29%, the higher education sub-sector was down 42%. “Higher educa-tion did a lot of refunding last year and there has been a lot done via [non-mu-nicipal] taxable debt and direct lending that does not always hit the books in the municipal realm,” Hallacy said. “Higher ed has also embraced P3s to an extent, especially for student housing.”

The general purpose sector was down 4% in the first half, less than the over-all 18% decline, and grew 16% in the second quarter compared to the first quarter. “General purpose capital pro-grams are steady, relatively constant, and hard to postpone,” and were less af-fected by the concerns with tax changes that affected other sectors, Muller said.

Within general purpose, state agen-cy issuance was up 13%. Hallacy ex-plained this by saying that interest rates are low and state credit is relatively strong.

Though the health care sector was down 50%, the nursing home subsector was up 21% and the life care/retirement subsector was up 71%. Hallacy said, there are “aging baby boomers and be-yond who have retired and there is a real need for these facilities.”

Elsewhere in the housing sector the cities and towns category went up 306% in dollar volume and 100% in issues. “Low income housing is a crit-ical need,” Hallacy said. “In California it is reaching crisis proportions and they cannot get enough supply. New York City is putting a push on for more affordable cities.”

Within public facilities, the stadi-um and sports complexes subcatego-ry grew 389% and to 11 issues from 9 issues. “The category was going to be eliminated under the tax bill last year,” Hallacy said. “The category was spared and it unleashed some pent up demand.”

While the utilities category declined 6%, the gas subcategory shot up 642% and the number of issues went to 28 from 12. Hallacy said the while the rea-son for this was unclear, he noted that more natural gas is being exported that the bond issuance increase was proba-bly connected to offshore delivery. q

Health Care, Development Help Lead the Way Down

By RoBeRt Slavin

COMMENTLet us know what you think about this story at BondBuyer.com

010_BB08201801 10 8/17/2018 4:12:34 PM


Public FacilitiesSenior Managers: First Half 2018

Manager Amt ($mill) 1 RBC Capital Mkts $865.4 2 Citi 612.8 3 Goldman Sachs 485.1 4 BA Merrill Lynch 366.4 5 J P Morgan 270.1 6 KeyBanc Cap Mkts 261.8 7 Stifel Nicolaus 254.1 8 Morgan Stanley 200.0 9 Robert W Baird 166.6 10 UBS Securities 145.2Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Public Facilities: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $4,904.2 224 $4,269.9 224 +14.9%First Quarter 2,565.9 122 1,182.9 100 +116.9Second Quarter 2,338.3 102 3,087.0 124 –24.3Libraries & Museums 291.1 27 292.6 16 –0.5Government Buildings 945.1 25 542.4 34 +74.2Fire Stations & Equipment 189.2 44 187.3 39 +1.0Correctional Facilities 609.2 19 504.2 24 +20.8Police Stations & Equipment 122.5 11 192.4 11 –36.3Civic & Convention Centers 730.7 14 1,668.6 15 –56.2Stadium & Sports Complexes 1,416.9 11 289.8 9 +388.9Theaters 144.0 3 35.3 2 +307.9Park, Zoos & Beaches 242.8 49 442.3 62 –45.1Other Recreation 212.9 21 115.2 12 +84.8Tax-Exempt 4,213.2 194 3,936.7 208 +7.0Taxable 691.0 30 333.3 16 +107.3Minimum-Tax 0.0 0 0.0 0 n.m.New-Money 3,968.6 196 2,800.7 161 +41.7Refunding 687.4 23 1,318.5 52 –47.9Combined 248.3 5 150.7 11 +64.8Negotiated 3,890.6 115 2,362.6 110 +64.7Competitive 855.9 88 1,723.1 93 –50.3Private Placements 157.7 21 184.2 21 –14.4Revenue 3,320.4 93 2,933.4 83 +13.2General Obligation 1,583.8 131 1,336.5 141 +18.5Fixed Rate 4,904.2 224 4,269.9 223 +14.9Variable Rate (Short Put) 0.0 0 0.0 0 n.m.Variable Rate (Long/No Put) 0.0 0 0.0 0 n.m.Zero Coupon 0.0 0 0.0 1 n.m.Linked Rate 0.0 0 0.0 0 n.m.Convertible 0.0 0 0.0 0 n.m.Bond Insurance 811.0 40 277.9 36 +191.8Letter of Credit 0.0 0 0.0 0 n.m.Standby Purchase Agreements 0.0 0 0.0 0 n.m.Guaranties 12.4 2 22.8 2 –45.6State Governments 145.7 3 74.5 2 +95.6State Agencies 749.2 12 639.8 16 +17.1Counties & Parishes 1,403.8 26 990.6 36 +41.7Cities & Towns 968.2 60 1,134.7 52 –14.7District 272.0 76 534.6 85 –49.1Local Authorities 1,362.9 46 895.8 33 +52.1Direct Issuer 2.5 1 0.0 0 n.m.Bank Qualified 384.1 110 402.0 106 –4.5Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

Public FacilitiesFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Estrada Hinojosa $465.4 2 PFM Financial Adv 395.7 3 Hobbs Ong 372.6 4 Frasca & Associates 333.1 5 KNN Public Fin 296.3 6 Umbaugh 287.8 7 Hilltop Securities 141.6 8 Piper Jaffray 128.7 9 George K Baum 106.8 10* Raymond James 60.0 10* Backstrom McCarley 60.0Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Public Facility IssuesDate Issuer Amt ($mill) Manager(s)Apr-11 Clark Co-Nevada, GOs $645.1 RBC Capital Mkts/J P MorganMar-7 Arlington City-Texas, (tax/te) 465.4 CitiJan-5 New Jersey Economic Dev Auth, (tax/te) 375.7 RBC Capital MktsFeb-22 Washington Convention & Sports Au, (tax/te) (ref) 333.1 Goldman SachsMay-23 Franklin Co-Ohio 250.0 BA Merrill LynchMar-14 Clark Co-Nevada, GOs, (cpt) 200.0 Morgan StanleyJan-22 Atlanta & Fulton Co Rec Auth, (tax) (nm/ref) 152.0 Goldman SachsApr-3 California St Public Works Board, (cpt) 141.3 UBS Financial Services IncJun-1 San Diego Public Facs Fin Auth, (tax) (ref) 129.3 CitiJan-18 Los Angeles Municipal Imp Corp, (tax) (ref) 111.3 Ramirez & Co IncKey to abbreviations: GOs – general obligation bonds; nm – new-money; ref – refunding; tax – taxable; te – tax-exempt. Source: Thomson Reuters (Jul. 11)

midyear review

TransportationSenior Managers: First Half 2018

Manager Amt ($mill) 1 BA Merrill Lynch $5,758.4 2 Citi 5,356.3 3 Goldman Sachs 3,043.1 4 Morgan Stanley 2,226.8 5 J P Morgan 1,856.2 6 Barclays 1,248.8 7 RBC Capital Mkts 1,026.9 8 Wells Fargo 801.6 9 Ramirez & Co 718.7 10 Jefferies LLC 654.1Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Transportation: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $24,449.5 234 $23,317.7 251 +4.9%First Quarter 8,583.0 89 12,478.2 110 –31.2Second Quarter 15,866.4 145 10,839.5 141 +46.4Airport 7,261.2 29 6,276.4 57 +15.7Seaport 2,013.7 18 790.8 18 +154.6Toll Roads, Hwys & Streets 8,078.7 127 4,938.7 116 +63.6Bridges 768.4 5 2,582.0 10 –70.2Tunnels 0.0 0 0.0 0 n.m.Parking Facilities 164.2 14 141.5 5 +16.0Mass Transportaions 6,163.2 41 8,588.4 45 –28.2Tax-Exempt 16,760.6 195 16,925.9 200 –1.0Taxable 644.7 21 1,553.9 19 –58.5Minimum-Tax 7,044.1 18 4,837.9 32 +45.6New-Money 17,392.7 183 11,346.6 159 +53.3Refunding 3,758.4 40 4,743.8 60 –20.8Combined 3,298.4 11 7,227.4 32 –54.4Negotiated 18,039.1 128 19,365.8 163 –6.9Competitive 5,986.8 93 2,565.5 69 +133.4Private Placements 423.6 13 1,386.5 19 –69.4Revenue 17,919.3 110 19,922.6 149 –10.1General Obligation 6,530.1 124 3,395.2 102 +92.3Fixed Rate 23,084.5 221 20,687.1 233 +11.6Variable Rate (Short Put) 468.9 5 871.6 5 –46.2Variable Rate (Long/No Put) 638.8 3 702.2 4 –9.0Zero Coupon 74.8 2 37.3 2 +100.5Linked Rate 182.5 3 1,019.6 7 –82.1Convertible 0.0 0 0.0 0 n.m.Bond Insurance 541.5 25 952.8 34 –43.2Letter of Credit 276.3 2 150.0 1 +27.5Standby Purch Agreements 191.2 2 0.0 0 n.m.Guaranties 0.0 0 0.0 0 n.m.State Governments 2,801.1 13 1,784.2 9 +57.0State Agencies 11,270.3 42 10,267.8 47 +9.8Counties & Parishes 1,518.6 21 820.0 19 +85.2Cities & Towns 1,686.9 88 4,412.7 87 –61.8District 343.8 23 875.4 30 –60.7Local Authorities 6,820.1 46 5,157.6 59 +32.2Direct Issuer 8.7 1 0.0 0 n.m.Bank Qualified 211.0 77 184.0 62 +14.7Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

TransportationFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 PFM Financial Adv $4,993.0 2 Public Resources Adv 4,189.6 3 Frasca & Associates 3,555.6 4 Estrada Hinojosa 1,484.0 5 Backstrom McCarley 1,364.6 6 Hilltop Securities 1,206.2 7 MUFG 1,181.5 8 Zions Bank 791.8 9 Acacia Financial 755.3 10 Piper Jaffray 632.6Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Transportation IssuesDate Issuer Amt ($mill) Manager(s)Jun-14 Metropolitan Transport Auth (MTA), GOs, (cpt) $1,600.0 Various firmsApr-24 New York Transportation Dev Corp, (amt) 1,383.5 CitiJun-5 California Municipal Fin Auth, (amt) 1,181.5 BA Merrill Lynch/CitiMay-16 San Francisco City & Co Airport Comm, (amt//tax/te) 881.8 Citi/BA Merrill LynchMay-16 Grand Parkway Transport Corp 878.6 Goldman Sachs/Morgan StanleyJan-23 Port Authority of NY & NJ, GOs, (tax/amt) (ref/nm) 832.3 Bank of America Merrill LynchJan-25 Connecticut (State) 800.0 Goldman SachsMay-22 West Virginia, GOs, (cpt) 800.0 BA Merrill LynchMay-16 Grand Parkway Transport Corp, GOs 605.3 Goldman Sachs/Morgan StanleyMar-6 Washington (State), GOs, (cpt) 601.9 Morgan StanleyKey to abbreviations: amt – alternative minimum tax; GOs – general obligation bonds; nm – new-money; ref – refunding; tax – taxable; te – tax-exempt. Source: Thomson Reuters (Jul. 11)

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UtilitiesFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 Municipal Capital Mkts $5,234.0 2 Hilltop Securities 2,548.7 3 PFM Financial Adv 1,981.9 4 Public Resources Adv 1,004.9 5 Lamont Financial 713.8 6 Drexel Hamilton 663.8 7 DEC Associates 409.9 8 Fieldman Rolapp 294.0 9 George K Baum 275.5 10 Montague DeRose 240.8Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Utilities: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $18,457.1 524 $19,745.2 682 –6.5%First Quarter 7,303.2 212 7,548.7 274 –3.3Second Quarter 11,153.9 312 12,196.5 408 –8.5Water & Sewer 12,063.1 407 18,288.6 585 –34.0Gas 5,265.6 18 709.6 7 +642.1Telephone 173.9 8 39.5 7 +340.3Sanitation 107.7 38 107.6 44 +0.1Food Control 219.3 25 229.8 27 –4.6Combined-Utilities 627.4 28 370.1 12 +69.5Tax-Exempt 18,098.3 502 18,784.1 655 –3.7Taxable 345.8 19 957.7 26 –63.9Minimum-Tax 13.0 3 3.5 1 +271.4New-Money 14,427.7 373 7,351.9 362 +96.2Refunding 2,638.5 113 7,059.6 250 –62.6Combined 1,390.9 38 5,333.7 70 –73.9Negotiated 13,392.2 268 13,637.3 365 –1.8Competitive 3,799.9 223 4,670.3 255 –18.6Private Placements 1,265.0 33 1,437.6 62 –12.0Revenue 16,415.6 287 17,181.5 387 –4.5General Obligation 2,041.5 237 2,563.7 295 –20.4Fixed Rate 13,042.4 505 18,189.8 661 –28.3Variable Rate (Short Put) 337.6 4 556.2 7 –39.3Variable Rate (Long/No Put) 3,824.8 6 579.7 3 +559.8Zero Coupon 16.0 4 10.0 6 +60.0Linked Rate 1,236.3 5 409.5 5 +201.9Convertible 0.0 0 0.0 0 n.m.Bond Insurance 1,150.7 143 1,828.7 191 –37.1Letter of Credit 0.0 0 105.0 2 –100.0Standby Purchase Agreements 210.0 2 80.0 1 +162.5Guaranties 16.0 8 40.4 5 –60.4State Governments 85.0 1 811.6 6 –89.5State Agencies 2,955.9 25 2,953.5 28 +0.1Counties & Parishes 570.2 24 739.7 20 –22.9Cities & Towns 4,518.5 206 5,826.6 248 –22.5District 4,294.6 188 3,970.0 278 +8.2Local Authorities 5,995.5 79 5,439.8 101 +10.2Direct Issuer 37.5 1 4.1 1 +814.6Cooperative Utilities 0.0 0 0.0 0 n.m.Bank Qualified 753.8 233 1,192.3 318 –36.8Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 28.0 4 –100.0Notes: Figures are based on issues maturing in 13 months or longer. Private placements and municipal forwards are included, but remarketings are excluded. n.m. — not meaningful. Source: Thomson Reuters (Jul. 11)

UtilitiesSenior Managers: First Half 2018

Manager Amt ($mill) 1 Morgan Stanley $2,803.3 2 RBC Capital Mkts 2,662.5 3 BA Merrill Lynch 2,015.2 4 J P Morgan 1,904.9 5 Goldman Sachs 1,558.7 6 Wells Fargo 862.2 7 Citi 815.3 8 Raymond James 761.7 9 Siebert Cisneros Shank 510.1 10 Robert W Baird 300.4Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Largest Utility IssuesDate Issuer Amt ($mill) Manager(s)Jan-26 Main Street Natural Gas Inc $1,021.7 RBC Capital MktsJun-8 Southeast Alabama Gas Dt 970.4 Morgan StanleyJan-19 Kentucky Pub Energy Au (PEAK) 833.1 Morgan StanleyApr-24 Texas Water Development Board 832.1 J P MorganMay-3 Southeast Alabama Gas Dt 721.8 Goldman Sachs & CoMar-1 Black Belt Energy Gas Dt 686.9 Goldman Sachs & CoMar-8 NYC Municipal Water Fin Auth, (cpt) (ref) 495.0 Morgan StanleyJun-6 Connecticut (State), GOs 492.1 Bank of America Merrill LynchApr-5 NYC Municipal Water Fin Auth, (ref) 458.9 Siebert Cisneros ShankFeb-22 California Infrstr & Eco Dev Bank 449.2 Bank of America Merrill LynchKey to abbreviations: amt – alternative minimum tax; cpt – competitive; nm – new money; pvt – private placement; ref – refunding; te – tax exempt. Source: Thomson Reuters (Jul. 11)

Bank-Qualified BondsFinancial Advisors: First Half 2018

Advisor Amt ($mill) 1 PFM Financial Adv $579.4 2 Ehlers & Associates 509.7 3 Hilltop Securities 225.8 4 Piper Jaffray 204.3 5 Robert W Baird 185.7 6 Umbaugh 179.2 7 Urban Futures 127.9 8 Speer Financial 116.8 9 PMA Securities 108.1 10 Springsted 106.4Private placements, short-term notes, and remarketings are excluded. In issues with co-advisors, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

Bank-Qualified Bonds: First Half 2018 2017 Percent Volume ($ mill) # Issues Volume ($ mill) # Issues Change

Total $6,349.2 1,659 $9,350.1 2,243 –32.1%First Quarter 2,651.4 678 4,194.4 946 –36.8Second Quarter 3,697.8 981 5,155.7 1,297 –28.3Development 52.9 15 87.0 17 –39.2Education 3,007.5 725 4,752.4 1,074 –36.7Electric Power 44.7 13 57.3 16 –22.0Environmental Facilities 1.2 1 1.3 1 –7.7Healthcare 13.2 2 75.7 17 –82.6Housing 7.6 2 16.4 3 –53.7Public Facilities 384.1 110 402.0 106 –4.5Transportation 211.0 77 184.0 62 +14.7Utilities 753.8 233 1,192.3 318 –36.8General Purpose 1,873.2 481 2,581.7 629 –27.4Tax-Exempt 6,349.2 1,659 9,349.9 2,242 –32.1Taxable 0.0 0 0.0 0 n.m.Minimum-Tax 0.0 0 0.2 1 –100.0New-Money 5,186.2 1,398 5,542.9 1,494 –6.4Refunding 882.3 209 3,156.2 622 –72.0Combined 280.7 52 651.0 127 –56.9Negotiated 2,645.8 637 4,661.0 1,012 –43.2Competitive 3,559.5 969 4,463.1 1,163 –20.2Private Placements 143.9 53 226.0 68 –36.3Revenue 989.3 255 1,230.5 306 –19.6General Obligation 5,359.9 1,404 8,119.6 1,937 –34.0Fixed Rate 6,328.0 1,651 9,311.2 2,215 –32.0Variable Rate (Short Put) 0.0 0 0.0 0 n.m.Variable Rate (Long/No Put) 0.0 0 14.1 2 –100.0Zero Coupon 17.9 7 24.9 26 –28.1Linked Rate 0.0 0 0.0 0 n.m.Convertible 3.2 1 0.0 0 n.m.Bond Insurance 1,431.5 286 2,227.6 433 –36.8Letter of Credit 0.0 0 5.4 1 –100.0Standby Purch Agreements 1.3 1 0.0 0 n.m.Insured Mortgages 0.0 0 0.0 0 n.m.Guaranties 1,179.9 260 1,700.2 324 –30.6Other Enhancements 0.0 0 0.0 0 n.m.State Governments 0.0 0 0.0 0 n.m.State Agencies 36.3 12 34.8 8 +4.3Counties & Parishes 409.9 87 492.6 94 –16.8Cities & Towns 2,020.3 574 2,824.7 730 –28.5District 3,542.5 913 5,601.3 1,321 –36.8Local Authorities 304.9 66 346.9 80 –12.1Colleges & Universities 35.1 6 45.7 9 –23.2Direct Issuer 0.3 1 4.1 1 –92.7Cooperative Utilities 0.0 0 0.0 0 n.m.Bank Qualified 6,349.2 1,659 9,350.1 2,243 –32.1Qualified Sch Construction 0.0 0 0.0 0 n.m.Other Stimulus Program 0.0 0 0.0 0 n.m.


Bank-Qualified BondsSenior Managers: First Half 2018

Manager Amt ($mill) 1 Robert W Baird $897.2 2 Stifel Nicolaus 375.0 3 Raymond James 357.3 4 RBC Capital Mkts 345.1 5 Roosevelt & Cross 318.9 6 Northland Securities 278.4 7 FTN Fin Cap Mkts 274.8 8 D A Davidson 269.0 9 Piper Jaffray 255.8 10 Janney Montgomery 239.7Private placements, short-term notes, and remarketings are excluded. In issues with multiple book-runners, the par amount of the issue is divided equally among the firms. Source: Thomson Reuters (Jul. 11)

midyear review

012_BB08201801 12 8/17/2018 4:12:36 PM


Top Co-Managers: All IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Bank of America Merrill Lynch $5,261.0 3.4% 137 2 Citi 4,882.5 3.1 161 3 Ramirez & Co Inc 4,874.2 3.1 318 4 J P Morgan Securities LLC 4,423.5 2.8 152 5 Wells Fargo & Co 4,033.6 2.6 142 6 Stifel Nicolaus & Co Inc 3,801.7 2.4 249 7 Siebert Cisneros Shank & Co LLC 3,740.9 2.4 169 8 Loop Capital Markets 3,717.9 2.4 397 9 Raymond James 3,587.4 2.3 205 10 Morgan Stanley 3,116.1 2.0 168This is Thomson Reuters’s AT12” league table. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. This table divides the par amount of an issue equally among the co-managers. Bookrunners are excluded. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Issuers: All IssuesFirst Half 2018

Rank Firm Volume Market Share Issues 1 California $4,328.3 2.8% 3 2 NYS Dorm Authority 3,173.1 2.0 12 3 NJ Tobacco Settlement Fin Corp 3,146.7 2.0 1 4 Metropolitan Transport Auth (MTA) 2,572.3 1.7 6 5 New York City-New York 2,294.3 1.5 8 6 NYC Transitional Finance Auth 2,275.7 1.5 9 7 Regents of the Univ of California 2,059.0 1.3 4 8 Main Street Natural Gas Inc 2,021.9 1.3 6 9 PA Commonwealth Financing Auth 1,899.7 1.2 2 10 Connecticut 1,818.6 1.2 12This is Thomson Reuters’s AT15” league table. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Senior Managers: All IssuesFirst Half 2018 - True Economics to Book-Runners

Rank Firm Volume Market Share Issues 1 Bank of America Merrill Lynch $27,092.2 17.4% 244 2 Citi 20,304.4 13.0 203 3 Morgan Stanley 13,564.4 8.7 147 4 J P Morgan Securities LLC 12,952.7 8.3 137 5 RBC Capital Markets 11,110.8 7.1 221 6 Goldman Sachs & Co LLC 8,548.7 5.5 53 7 Jefferies LLC 8,279.8 5.3 45 8 Raymond James 6,488.5 4.2 236 9 Wells Fargo & Co 6,402.4 4.1 102 10 Stifel Nicolaus & Co Inc 4,655.9 3.0 288This is Thomson Reuters’s AT1” league table. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. The full par amount of an issue is credited to the book-running manager; in issues with multi-ple bookrunners each firm is credited with the actual allocation it received. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Financial Advisors: All IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 PFM Financial Advisors LLC $26,014.7 19.1% 422 2 Public Resources Advisory Group 18,706.0 13.7 88 3 Hilltop Securities 9,657.4 7.1 263 4 Municipal Capital Markets Group Inc 5,234.0 3.8 17 5 Acacia Financial Group Inc 4,588.7 3.4 68 6 Frasca & Associates 3,888.7 2.9 9 7 Piper Jaffray & Co 2,985.4 2.2 103 8 Estrada Hinojosa & Company Inc 2,692.4 2.0 29 9 Swap Financial Group LLC 2,497.0 1.8 8 10 KNN Public Finance 2,174.8 1.6 28This is Thomson Reuters’s AT7” league table. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Issues with multiple advisors divide the par amount equally among the advisors. Source: Thomson Reuters. For more Top Rankings see next page.” Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Senior Managers: Negotiated IssuesFirst Half 2018 - True Economics to Book-Runners

Rank Firm Volume Market Share Issues 1 Bank of America Merrill Lynch $17,106.2 15.4% 152 2 Citi 13,350.2 12.0 114 3 RBC Capital Markets 10,260.1 9.2 189 4 J P Morgan Securities LLC 8,991.1 8.1 75 5 Morgan Stanley 8,486.4 7.6 74 6 Goldman Sachs & Co LLC 7,461.3 6.7 44 7 Jefferies LLC 7,290.4 6.6 26 8 Raymond James 5,035.4 4.5 144 9 Stifel Nicolaus & Co Inc 4,400.0 4.0 257 10 Wells Fargo & Co 4,370.8 3.9 68This is Thomson Reuters’s AT3” league table for negotiated offerings. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, pri-vate placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. The full par amount of an issue is credited to the book-running manager; in issues with multiple bookrunners each firm is credited with the allocation that it received. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Financial Advisors: Negotiated IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 PFM Financial Advisors LLC $19,198.7 20.8% 233 2 Public Resources Advisory Group 10,058.4 10.9 37 3 Hilltop Securities 6,509.5 7.0 122 4 Municipal Capital Markets Group Inc 5,234.0 5.7 17 5 Frasca & Associates 3,888.7 4.2 9 6 Acacia Financial Group Inc 2,584.0 2.8 40 7 Swap Financial Group LLC 2,497.0 2.7 8 8 Estrada Hinojosa & Company Inc 2,380.2 2.6 21 9 KNN Public Finance 1,908.5 2.1 26 10 CSG Advisors Incorporated 1,876.6 2.0 40This is Thomson Reuters’s AT7b” league table for negotiated offerings. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Issues with multiple advisors divide the par amount equally among the advisors. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

midyear review

Top Senior Managers: Competitive IssuesFirst Half 2018 - True Economics to Book-Runners

Rank Firm Volume Market Share Issues 1 Bank of America Merrill Lynch $9,986.0 22.3% 92 2 Citi 6,954.2 15.5 89 3 Morgan Stanley 5,077.9 11.3 73 4 J P Morgan Securities LLC 3,961.6 8.8 62 5 Robert W Baird & Co Inc 2,916.1 6.5 284 6 Wells Fargo & Co 2,031.7 4.5 34 7 UBS Securities LLC 1,559.7 3.5 47 8 Raymond James 1,453.1 3.2 92 9 Goldman Sachs & Co LLC 1,087.4 2.4 9 10 Jefferies LLC 989.4 2.2 19This is Thomson Reuters’s AT4” league table for competitive offerings. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. The full par amount of an issue is credited to the book-running manager; in issues with multiple bookrunners each firm is credited with the actual allocation that it received. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Financial Advisors: Competitive IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Public Resources Advisory Group $8,647.6 19.8% 51 2 PFM Financial Advisors LLC 6,816.1 15.6 189 3 Hilltop Securities 3,147.9 7.2 141 4 Acacia Financial Group Inc 2,004.6 4.6 28 5 Ehlers & Associates 1,760.9 4.0 181 6 Piper Jaffray & Co 1,636.7 3.8 73 7 Springsted Incorporated 1,151.5 2.6 74 8 Davenport & Company LLC 1,030.8 2.4 24 9 Capital Markets Advisors LLC 901.0 2.1 49 10 Backstrom McCarley Berry & Co 785.6 1.8 4

This is Thomson Reuters’s AT7c” league table for competitive offerings. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Issues with multiple advisors divide the par amount equally among the advisors. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Senior Managers: Small IssuesFirst Half 2018 - True Economics to Book-Runners

Rank Firm Volume Market Share Issues 1 Robert W Baird & Co Inc $1,118.5 12.5% 262 2 Stifel Nicolaus & Co Inc 690.1 7.7 123 3 Raymond James 464.0 5.2 95 4 RBC Capital Markets 443.6 5.0 79 5 Roosevelt & Cross Inc 417.9 4.7 107 6 Piper Jaffray & Co 347.2 3.9 53 7 D A Davidson & Co 336.0 3.8 100 8 Janney Montgomery Scott LLC 313.9 3.5 41 9 FTN Financial Capital Markets 310.9 3.5 52 10 Northland Securities 283.6 3.2 83This is Thomson Reuters’s AT2” league table for issues with composite amounts of $10 million or less. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. The full par amount of an issue is credited to the book-running manager; in issues with multiple bookrunners each firm is credited with the actual allocation that it received. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

Top Financial Advisors: Small IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 PFM Financial Advisors LLC $734.7 10.9% 137 2 Ehlers & Associates 573.2 8.5 164 3 Hilltop Securities 529.2 7.9 106 4 Stephen H McDonald & Associates Inc 289.8 4.3 148 5 Robert W Baird & Co Inc 279.6 4.2 62 6 Umbaugh LLP 278 4.1 58 7 Piper Jaffray & Co 257 3.8 49 8 Urban Futures Inc 181.3 2.7 34 9 Springsted Incorporated 159.7 2.4 42 10 Phoenix Advisors LLC 153.8 2.3 27

This is Thomson Reuters’s AT7a” league table for issues with composite amounts of $10 million or less. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018. Short-term notes, private placements and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Issues with multiple advisors divide the par amount equally among the advisors. Source: Thomson Reuters (as recompiled by The Bond Buyer on Jul. 2)

013_BB08201801 13 8/17/2018 4:12:36 PM


Top Trustee Banks: All IssuesFirst Half 2018 - Ranked by Dollar Volume

Rank Firm Volume Market Share Issues 1 The Bank of New York Mellon $39,651.4 47.4% 285 2 US Bank NA 25,335.5 30.3 391 3 Wells Fargo Bank 3,674.3 4.4 60 4 Wilmington Trust NA 3,421.7 4.1 76 5 UMB Bank NA 2,778.2 3.3 108 6 Zions Bank 2,654.8 3.2 70 7 BOKF NA 1,252.3 1.5 33 8 Huntington National Bank 1,136.3 1.4 21 9 Regions Bank 989.1 1.2 42 10 BancFirst 429.5 0.5 19 This is Thomson Reuters’s “AT8” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018 Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Source: Thomson Reuters (Jul. 13)

Top Bond Counsel: All IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Orrick Herrington & Sutcliffe LLP $21,597.9 13.9% 178 2 Norton Rose Fulbright 9,828.0 6.3 150 3 Hawkins Delafield & Wood LLP 6,661.3 4.3 135 4 Kutak Rock LLP 5,868.2 3.8 168 5 McCall Parkhurst & Horton LLP 5,209.2 3.4 116 6 Chapman and Cutler LLP 4,617.8 3.0 159 7 Nixon Peabody LLP 4,343.5 2.8 36 8 Squire Patton Boggs 3,378.6 2.2 49 9 Bracewell LLP 3,198.8 2.1 59 10 Gilmore & Bell PC 3,092.5 2.0 169This is Thomson Reuters’s “AT5” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, the par amount is divided equally among the firms. Source: Thomson Reuters (Jul. 13)

Top Underwriter’s Counsel: All IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Hawkins Delafield & Wood LLP $12,434.7 11.8% 48 2 Nixon Peabody LLP 8,146.7 7.7 41 3 Orrick Herrington & Sutcliffe LLP 7,032.9 6.7 82 4 Norton Rose Fulbright 5,829.9 5.5 99 5 Katten Muchin Rosenman LLP 4,080.1 3.9 29 6 Chapman and Cutler LLP 4,030.5 3.8 30 7 Kutak Rock LLP 3,834.3 3.6 98 8 Stradling Yocca Carlson & Rauth 3,807.3 3.6 55 9 O’Melveny & Myers 3,579.6 3.4 6 10 Squire Patton Boggs 2,981.0 2.8 51This is Thomson Reuters’s “AT6” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, the par amount is divided equally among the firms. Source: Thomson Reuters (Jul. 13)

Top Bond Counsel: All IssuesFirst Half 2018 - Full Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Orrick Herrington & Sutcliffe LLP $21,597.9 13.9% 178 2 Norton Rose Fulbright 9,828.0 6.3 150 3 Hawkins Delafield & Wood LLP 6,661.3 4.3 135 4 Kutak Rock LLP 5,868.2 3.8 168 5 McCall Parkhurst & Horton LLP 5,209.2 3.4 116 6 Chapman and Cutler LLP 4,617.8 3.0 159 7 Nixon Peabody LLP 4,343.5 2.8 36 8 Squire Patton Boggs 3,378.6 2.2 49 9 Bracewell LLP 3,198.8 2.1 59 10 Gilmore & Bell PC 3,092.5 2.0 169This is a modified version of Thomson Reuters’s “AT5” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, each firm is credited with the full par amount of the issue. Source: Thomson Reuters (Jul. 13)

Top Underwriter’s Counsel: All IssuesFirst Half 2018 - Full Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Hawkins Delafield & Wood LLP $12,434.7 11.8% 48 2 Nixon Peabody LLP 8,146.7 7.7 41 3 Orrick Herrington & Sutcliffe LLP 7,032.9 6.7 82 4 Norton Rose Fulbright 5,829.9 5.5 99 5 Katten Muchin Rosenman LLP 4,080.1 3.9 29 6 Chapman and Cutler LLP 4,030.5 3.8 30 7 Kutak Rock LLP 3,834.3 3.6 98 8 Stradling Yocca Carlson & Rauth 3,807.3 3.6 55 9 O’Melveny & Myers 3,579.6 3.4 6 10 Squire Patton Boggs 2,981.0 2.8 51This is a modified version of Thomson Reuters’s “AT6” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018 . Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, each firm is credited with the full par amount of the issue. Source: Thomson Reuters (Jul. 13)

midyear review

Top Bond Counsel: Negotiated IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Orrick Herrington & Sutcliffe LLP $20,015.0 18.1% 129 2 Norton Rose Fulbright 6,699.5 6.1 81 3 Kutak Rock LLP 4,772.0 4.3 140 4 Hawkins Delafield & Wood LLP 4,622.7 4.2 66 5 McCall Parkhurst & Horton LLP 4,176.6 3.8 61 6 Chapman and Cutler LLP 3,877.7 3.5 108 7 Squire Patton Boggs 3,147.8 2.9 40 8 Alston & Bird LLP 2,708.8 2.5 9 9 Bracewell LLP 2,437.4 2.2 36 10 Gilmore & Bell PC 2,319.7 2.1 115

This is Thomson Reuters’s “AT5a” league table for negotiated offerings. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018 Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, the par amount is divided equally among the firms. Source: Thomson Reuters (Jul. 13)

Top Disclosure Counsel: All IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Orrick Herrington & Sutcliffe LLP $9,797.0 14.6% 83 2 Hawkins Delafield & Wood LLP 8,075.1 12.0 33 3 Stradling Yocca Carlson & Rauth 4,723.7 7.0 85 4 Bracewell LLP 3,120.7 4.7 14 5 Nixon Peabody LLP 3,107.1 4.6 17 6 Kutak Rock LLP 2,629.4 3.9 62 7 Norton Rose Fulbright 2,285.6 3.4 49 8 Greenberg Traurig LLP 1,881.2 2.8 17 9 Polsinelli PC 1,834.5 2.7 3 10 Squire Patton Boggs 1,739.2 2.6 19

This is Thomson Reuters’s “AT23” league table for competitive offerings. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018 . Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, each firm is credited with the full par amount of the issue. Source: Thomson Reuters (Jul. 13)

Top Bond Counsel: Competitive IssuesFirst Half 2018 - Equal Credit to Each Firm

Rank Firm Volume Market Share Issues 1 Norton Rose Fulbright $3,128.5 7.0% 69 2 Nixon Peabody LLP 2,168.5 4.9 16 3 Hawkins Delafield & Wood LLP 2,038.6 4.6 69 4 Orrick Herrington & Sutcliffe LLP 1,582.9 3.6 49 5 D Seaton & Associates 1,286.2 2.9 6 6 Locke Lord LLP 1,274.6 2.9 87 7 Gray Pannell & Woodward LLP 1,274.0 2.9 7 8 Mintz Levin Cohn Ferris Glovsky & Popeo PC 1,209.9 2.7 6 9 Ballard Spahr LLP 1,198.5 2.7 4 10 Kutak Rock LLP 1,096.2 2.5 28

This is Thomson Reuters’s “AT5b” league table for competitive offerings. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018 . Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. In issues with co-counsel, the par amount is divided equally among the firms. Source: Thomson Reuters (Jul. 13)

Top Trustee Banks: All IssuesFirst Half 2018 – Ranked by Number of Issues

Rank Firm Issues Market Share Volume 1 US Bank NA 391 32.5% $25,335.5 2 The Bank of New York Mellon 285 23.7 39,651.4 3 UMB Bank NA 108 9.0 2,778.2 4 Wilmington Trust NA 76 6.3 3,421.7 5 Zions Bank 70 5.8 2,654.8 6 Wells Fargo Bank 60 5.0 3,674.3 7 Regions Bank 42 3.5 989.1 8 BOKF NA 33 2.7 1,252.3 9 Huntington National Bank 21 1.7 1,136.3 10 BancFirst 19 1.6 429.5This is Thomson Reuters’s “AT9” league table. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Source: Thomson Reuters (Jul. 13)

Top Letter-of-Credit Providers: All IssuesFirst Half 2018 - Ranked by Enhanced Amount

Rank Firm Volume Market Share Issues 1 Sumitomo Mitsui Banking Corp $238.2 31.9% 2 2 US Bank NA 139.2 18.7 3 3 Barclays 138.2 18.5 1 4 Wells Fargo Bank 100.0 13.4 1 5 Fed Home Loan Bk San Francisco 79.6 10.7 2 6 East West Bank 20.0 2.7 1 7 Citizens Bank 12.0 1.6 1 8 CoBank ACB 10.5 1.4 1 9 PNC Bank NA 8.5 1.1 1 10 Manufacturers & Traders Tr Co 0.0 0.0 0

This is Thomson Reuters’s “AT29” league table modified to include domestic and foreign banks. Dollar amounts are in millions. Rankings are final as of Jul. 2, 2018 Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Each firm is credited with the actual amount that it enhanced within the issue. Source: Thomson Reuters (Jul. 13)

014_BB08201801 14 8/17/2018 4:12:37 PM

www.bondbuyer.com A15Monday, August 20, 2018 midyear review

Explanation of the IndexesThe Municipal Bond Index

The Bond Buyer Municipal Bond Index is a daily price index based on 40 long-term municipal bonds. The index’s value is expressed in points and 32ds. The figures shown are weekly averages of the index’s daily figures for each week ending Thursday.

The index contains 40 long-term municipal bonds. Taxable bonds, variable-rate bonds, and private placements are excluded, but bonds subject to the alternative minimum tax and fixed-rate remarketings can be included. The index is based on price quotations provided by Standard & Poor’s Securities Evaluations. It is calculated every business day using prices as of 4 p.m. Eastern time.

The index’s value is calculated by taking the dollar bid price for each bond, converting it to represent what the price would be if the bond had a standard 6% coupon rate, averaging the converted prices, and multiplying the result by the current value of the coefficient. The coefficient compensates for the changes made twice a month in the composition of the index.

The average yield to par call is calculated using the average coupon rate, average par call date, and average dollar price. The average yield to maturity is calculated using the average maturity date.

The Weekly Bond IndexesThe three weekly bond indexes are calculated every Thursday (or Wednesday if Thursday or Friday is a legal holiday). They represent theoretical yields

rather than actual price or yield quotations. Municipal bond dealers and banks are asked to estimate what a current-coupon bond for each issuer would yield if the bond was sold at par value. The indexes are simple averages of the average estimated yields of the bonds.

The 20-Bond Index consists of 20 general obligation bonds that mature in 20 years. The average rating of the 20 bonds is roughly equivalent to Moody’s Investors Service’s Aa2 and Standard & Poor’s Corp.’s AA. (No average Fitch rating is provided because Fitch does not rate all of the bonds in the index.)

The 11-Bond Index uses a select group of 11 bonds in the 20-Bond Index. The average rating of the 11 bonds is roughly equivalent to Moody’s Aa1 rating and S&P’s AA-plus. (No average Fitch rating is provided.)

The bonds currently used in the two indexes are listed below. The bonds in the 11-Bond Index are marked with an asterisk. Moody’s/S&P/Fitch Moody’s/S&P/Fitch Moody’s/S&P/FitchBaltimore, Md. Aa2 / AA / NR *Massachusetts. Aa1 / AA / AA+ Pennsylvania. Aa3 / A+/ AA–California Aa3 / AA– / AA– Memphis, Tenn. Aa2 / AA / AA *Phoenix, Ariz Aa1 / AA+ / NR*Denver, Colo. Aaa / AAA / AAA Miami-Dade Co., Fla. Aa2 / AA / AA *Seattle, Wash. Aaa / AAA / AAA*Florida Aaa / AAA / AAA Milwaukee, Wis. A1 / AA / AA *South Carolina Aaa / AA+ / AAA*Georgia Aaa / AAA / AAA New York City Aa2 / AA / AA *Texas Aaa / AAA / AAAHouston, Tex. Aa3 / AA / AA *New York State Aa1 / AA+ / AA+ *Washington Aa1 / AA+ / AA+*Maryland Aaa / AAA / AAA North Carolina Aaa / AAA / AAA

The Revenue Bond IndexThe Revenue Bond Index consists of 25 various revenue bonds that mature in 30 years. The average rating is roughly equivalent to Moody’s A1 and

S&P’s A-plus. (No average Fitch rating is provided because Fitch does not rate all the bonds in the index.) The bonds currently used in the index and their ratings are listed below.

Moody’s S&P FitchArizona Health Facilities Authority, (Banner Health) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NR AA– AA–Atlanta, Ga., airport (AMT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa3 AA– AA–California Housing Finance Agency, multi-unit rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 A+ NRConnecticut Housing Finance Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aaa AAA NRDallas-Fort Worth International Airport Board, Tex. (AMT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 A+ AEnergy Northwest (formerly WPPSS), Wash., power revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa1 AA– AAIllinois Health Facilities Authority (Northwestern Memorial Hospital) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa2 AA+ NRIllinois Housing Development Authority, multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 AA– AA–Intermountain Power Agency, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 A+ AAJEA (formerly Jacksonville Electric Authority), Fla. electric revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa2 AA– AAKentucky Turnpike Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa3 AA– NRLos Angeles Department of Water and Power, Calif., electric revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa2 AA AAMassachusetts Port Authority (AMT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa2 AA AAMEAG Power (formerly Municipal Electric Authority of Georgia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2 A+ ANebraska Public Power District, power supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 A+ A+New Jersey Turnpike Authority, turnpike revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2 A+ ANew York State Local Government Assistance Corp., revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa1 AAA NRNew York State Power Authority, general purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa1 AA AANorth Carolina Municipal Power Agency No. 1, Catawba electric revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2 A APort Authority of New York and New Jersey, consolidated (AMT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa3 AA– AA–Puerto Rico Electric Power Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ca D DSalt River Project Agricultural Improvement and Power District, Ariz., electric revenue . . . . . . . . . . . . . . . . . . . . . . . . . . Aa AA NRSouth Carolina Public Service Authority, electric revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1 A+ A+Texas Municipal Power Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2 A+ A+Virginia Housing Development Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aa1 AA+ NR

U.S. Treasury 10-Year Note and 30-Year BondThe U.S. Treasury 10-year note and 30-year bond yields are Thomson Reuters quotes as of 3:30 p.m. Eastern time.

Interest Rate Indexes: 2017-18 Municipal Bond Index Weekly Bond Indexes 6% Yield to Yield to 20-Bond 11-Bond 25-Bond 1-Year 10-Year 30-Year Date Index Per Call Maturity Gen Obl Gen Obl Revenue Note Treasury Treasury

Jul-17 6 126-15 3.71 4.10 3.60 3.11 3.76 0.00 2.37 2.90 13 126-20 3.68 4.09 3.61 3.12 3.77 0.00 2.35 2.92 20 128-01 3.52 4.02 3.51 3.02 3.70 0.00 2.27 2.83 27 127-27 3.54 4.03 3.52 3.03 3.72 0.00 2.31 2.93Aug 3 128-13 3.47 4.01 3.50 3.01 3.70 0.00 2.23 2.81 10 128-15 3.46 4.00 3.52 3.03 3.73 0.00 2.21 2.78 17 128-05 3.50 4.02 3.57 3.08 3.78 0.00 2.20 2.78 24 128-15 3.46 4.00 3.53 3.04 3.74 0.00 2.20 2.77 31 128-26 3.42 3.99 3.51 3.02 3.72 0.00 2.13 2.73Sept 7 129-12 3.34 3.96 3.49 3.00 3.70 0.00 2.05 2.67 14 128-14 3.45 4.00 3.56 3.07 3.77 0.00 2.20 2.78 21 128-04 3.49 4.02 3.60 3.11 3.81 0.00 2.28 2.80 28 127-22 3.54 4.04 3.64 3.15 3.85 0.00 2.31 2.87Oct 5 127-31 3.50 4.02 3.63 3.14 3.84 0.00 2.35 2.89 12 128-13 3.45 4.00 3.61 3.12 3.82 0.00 2.33 2.86 19 129-04 3.37 3.97 3.53 3.04 3.86 0.00 2.33 2.83 26 127-25 3.53 4.03 3.65 3.16 3.98 0.00 2.46 2.96Nov 2 128-09 3.49 3.97 3.67 3.17 4.04 0.00 2.35 2.83 8 130-02 3.28 3.89 3.49 2.99 3.86 0.00 2.33 2.79 16 129-01 3.40 3.94 3.52 3.01 3.91 0.00 2.37 2.82 21 128-21 3.44 3.96 3.51 3.01 3.97 0.00 2.37 2.76 30 128-04 3.50 3.98 3.59 3.09 4.04 0.00 2.42 2.84Dec 7 130-27 3.19 3.86 3.29 2.79 3.77 0.00 2.37 2.76 14 130-04 3.27 3.89 3.41 2.91 3.89 0.00 2.35 2.71 21 128-26 3.47 3.95 3.56 3.06 4.04 0.00 2.49 2.84 28 130-07 3.31 3.88 3.44 2.94 3.92 0.00 2.43 2.76Jan-18 4 130-05 3.36 3.80 3.44 2.94 3.92 0.00 2.46 2.79 11 128-22 3.51 3.87 3.54 3.04 4.03 0.00 2.54 2.87 18 128-24 3.51 3.86 3.52 3.02 4.01 0.00 2.63 2.90 25 128-04 3.57 3.89 3.59 3.09 4.08 0.00 2.63 2.89Feb 1 126-23 3.74 3.97 3.72 3.22 4.21 0.00 2.79 3.01 8 126-07 3.80 3.99 3.73 3.23 4.22 0.00 2.86 3.14 15 125-17 3.87 4.02 3.84 3.34 4.33 0.00 2.91 3.15 22 125-10 3.85 4.01 3.86 3.36 4.35 0.00 2.93 3.21Mar 1 125-20 3.81 3.99 3.85 3.35 4.34 0.00 2.81 3.09 8 125-10 3.84 4.01 3.88 3.38 4.37 0.00 2.87 3.13 15 125-06 3.85 4.01 3.89 3.39 4.37 0.00 2.82 3.05 22 125-15 3.83 4.00 3.90 3.40 4.38 0.00 2.83 3.06 28 125-25 3.80 3.99 3.89 3.39 4.37 0.00 2.78 3.01Apr 5 125-19 3.82 4.00 3.90 3.40 4.38 0.00 2.83 3.08 12 125-29 3.78 3.98 3.85 3.35 4.33 0.00 2.84 3.04 19 125-12 3.84 4.01 3.87 3.37 4.35 0.00 2.92 3.11 26 123-28 4.01 4.08 3.97 3.45 4.46 0.00 3.00 3.18May 3 125-18 3.82 4.00 3.89 3.37 4.38 0.00 2.95 3.12 10 126-00 3.77 3.98 3.88 3.36 4.37 0.00 2.97 3.12 17 124-30 3.89 4.03 3.95 3.43 4.44 0.00 3.12 3.25 24 125-19 3.81 4.00 3.90 3.38 4.39 0.00 2.98 3.12 31 126-24 3.68 3.94 3.78 3.26 4.27 0.00 2.83 3.00Jun 7 125-24 3.79 3.99 3.88 3.36 4.37 0.00 2.94 3.08 14 125-13 3.83 4.01 3.92 3.40 4.41 0.00 2.94 3.05 21 125-31 3.77 3.98 3.87 3.35 4.36 0.00 2.90 3.04 28 126-01 3.76 3.98 3.87 3.35 4.36 0.00 2.85 2.98

12-Month Average 127-01 3.61 3.98 3.68 3.18 4.07 0.00 2.58 2.94

'18

20-Bond Index 30-Year Treasury Bond 10-Year Treasury Note

Interest Rates: 2008-18

Sources: The Bond Buyer/ICAP plc/Thomson Reuters/Moody’s Investors Service Inc.

'17'16'15'14'13'12'11'10'09'080

1

2

3

4

5

6

Interest Rates: 2017-18

Sources: The Bond Buyer/ICAP plc/Thomson Reuters/Moody’s Investors Service Inc.

20-Bond GO Index 30-Year Treasury Bond 10-Year Treasury Note

1

2

3

4

5

JMAMFJ-18DNOSAJ-17

Top Special Tax Counsel: All IssuesFirst Half 2018 - Ranked by Tax Amount

Rank Firm Volume Market Share Issues 1 Orrick Herrington & Sutcliffe LLP $3,381.2 53.3% 16 2 Ballard Spahr LLP 535.5 8.4 3 3* Soeder & Associates LLC 509.3 8.0 11 3* Robinson & Cole LLP 509.3 8.0 11 5 McKennon Shelton & Henn LLP 416.8 6.6 1 6 Gilmore & Bell PC 186.6 2.9 9 7* Edwards & Feanny PA 169.8 2.7 3 7* Greenberg Traurig LLP 169.8 2.7 3 9 Bracewell LLP 115.6 1.8 7 10 Stradling Yocca Carlson & Rauth 60.0 1.0 1*Tie. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Each firm is credited with the actual amount that it enhanced within the issue. Source: Thomson Reuters (Jul. 13)

Top Standby Purchase Agreement Providers: All IssuesFirst Half 2018 - Ranked by Enhanced Amount

Rank Firm Volume Market Share Issues 1 TD Bank NA 414.6 31.7% 4 2 Fed Home Loan Bank of Dallas 250.0 19.1 2 3 US Bank NA 191.2 14.6 2 4 J P Morgan Chase 129.7 9.9 1 5 Federal Home Loan Bk of Topeka 97.0 7.4 3 6 Royal Bank of Canada 75.6 5.8 3 7 Bank of America 47.5 3.6 1 8 Barclays 40.6 3.1 1 9* Federal Home Loan Bank Chicago 30.0 2.3 1 9* State Street Bank & Trust Co 30.0 2.3 1*Tie. Dollar amounts are in millions. Rankings are final as of Jul. 13, 2018. Short-term notes, private placements, and deals not meeting Thomson Reuters’s T+5 policy rule are excluded. Each firm is credited with the actual amount that it enhanced within the issue. Source: Thomson Reuters (Jul. 11)

015_BB08201801 15 8/17/2018 4:12:38 PM


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016_BB08201801 16 8/17/2018 4:12:40 PM

Documents

2018 IN STATISTICS...Note: Amounts represent dollars per $1,000 face value of bond issues. Underwriting spreads include managers’ fees, underwriting fees, average takedowns, and