The Latest Municipal Bond Industry Statistics Explained
U.S. municipal bond issuance reached $435 billion in 2019.
This statistic indicates that the total value of municipal bonds issued in the United States in 2019 amounted to $435 billion. Municipal bonds are debt securities issued by state and local governments to finance various public infrastructure projects, such as roads, schools, and utilities. The high level of municipal bond issuance suggests strong activity in the municipal bond market, reflecting government entities’ continued willingness to borrow funds to support their projects. This figure can be used to assess the level of investment and spending in the public sector and may also indicate the overall financial health and borrowing capabilities of state and local governments in the U.S. for that year.
In 2020, municipal bond issuance was $475.6 billion.
The statistic “In 2020, municipal bond issuance was $475.6 billion” indicates the total value of municipal bonds issued by local, state, or other government entities in 2020. Municipal bonds are a form of debt securities issued to finance public infrastructure projects such as schools, roads, and utilities. The amount of $475.6 billion represents the total funds raised through the sale of these bonds in the municipal bond market in 2020. This statistic is indicative of the level of investment in infrastructure projects undertaken by government entities during the year and provides insight into the overall health and activity in the municipal bond market. Additionally, it may also reflect the financing needs and priorities of local and state governments in that particular year.
Approximately 1 million separate bonds are in existence in the U.S. municipal bond market.
The statistic that approximately 1 million separate bonds are in existence in the U.S. municipal bond market signifies the vast scale and diversity of the market. Municipal bonds are debt securities issued by local governments, authorities, or agencies to finance public projects and services. The presence of 1 million individual bonds reflects the varied needs and priorities of different municipalities across the country, with bonds supporting projects such as infrastructure development, schools, hospitals, and public utilities. Investors in municipal bonds can choose from a wide array of options in terms of issuer, maturity date, interest rate, and credit risk, providing flexibility and opportunities for diversification in their investment portfolios within the municipal bond market.
Approximately 50,000 state and local entities issue municipal bonds.
The statistic that approximately 50,000 state and local entities issue municipal bonds highlights the widespread practice of financing infrastructure and development projects in the United States through the issuance of bonds. Municipal bonds are debt securities issued by state and local governments or agencies to raise funds for various public projects such as building schools, hospitals, roads, and other essential infrastructure. The fact that there are around 50,000 entities issuing municipal bonds indicates the significant involvement of a large number of governmental bodies at the state and local levels in the bond market, reflecting the decentralized nature of public finance in the country and the extent of investment opportunities available for investors seeking tax-exempt income.
80% of the municipal bond issuances in 2019 were new money.
This statistic indicates that 80% of the municipal bond issuances in 2019 were used to raise funds for new projects or initiatives, rather than to refinance existing debt. Municipal bonds are typically issued by local governments to finance public infrastructure projects such as schools, highways, and utilities. When a municipality issues new money bonds, it is essentially borrowing money from investors to fund these new projects. This statistic suggests that the majority of municipal governments in 2019 were actively investing in new developments and initiatives to support the growth and improvement of their communities, rather than simply managing existing debt obligations.
The average daily trading volume in municipal bonds was $23.3 billion in 2019.
The statistic that the average daily trading volume in municipal bonds was $23.3 billion in 2019 indicates the average value of municipal bonds exchanged on a daily basis throughout that year. This metric gives insight into the level of activity and liquidity in the municipal bond market, reflecting the volume of trading occurring within this specific sector of the financial market. The high average daily trading volume suggests that municipal bonds were actively traded in 2019, potentially indicating investor interest in these types of bonds as well as the overall health and activity within the municipal bond market during that period.
California had the highest issuance of municipal bonds in 2020 at $60.3 billion.
The statistic indicates that California led all states in the United States in terms of issuing municipal bonds in 2020, with a total of $60.3 billion raised through such bonds. Municipal bonds are debt securities issued by state and local governments to finance public projects, such as infrastructure development or schools. The high level of issuance in California suggests a significant demand for funding for public initiatives in the state. This statistic can be indicative of California’s robust economic activity and the government’s commitment to investing in its communities, as well as the state’s ability to attract investors willing to finance its projects through the municipal bond market.
More than 70% of American municipal bonds are owned by individuals.
The statistic “More than 70% of American municipal bonds are owned by individuals” indicates that the majority of municipal bonds in the United States are held by individual retail investors as opposed to institutional investors. This suggests that individual investors play a significant role in the municipal bond market, demonstrating their preference for the safety and stability associated with these fixed-income securities issued by state and local governments. The high level of individual ownership may also reflect the appeal of tax-exempt income that municipal bonds offer to investors, making them a popular investment choice for many Americans seeking a reliable source of income while also supporting local infrastructure projects and initiatives.
The revenue from Municipal Bond Underwriting stood at $2.9 billion in 2020.
The statistic indicates that the total revenue generated from Municipal Bond Underwriting in the year 2020 was $2.9 billion. Municipal bonds are debt securities issued by state and local governments to finance various public projects such as hospitals, schools, and infrastructure development. The revenue from underwriting these bonds represents the fees earned by financial institutions for helping governments issue and sell these bonds to investors. The $2.9 billion revenue figure highlights the significant economic activity and financial transactions in the municipal bond market during 2020, demonstrating the importance of this sector for funding public projects and investments at the local government level.
About 34% of municipal debt issued in 2019 was in the form of revenue bonds.
This statistic indicates that approximately 34% of the total municipal debt issued in 2019 was in the form of revenue bonds. Revenue bonds are a type of municipal bond that is backed by the revenue generated from a specific project or facility, such as toll roads, airports, or utilities, rather than the general taxing power of the issuing municipality. This implies that a significant portion of the debt issued by municipalities in 2019 was tied to specific revenue-generating projects, which can provide investors with more certainty about the repayment of the bond principal and interest. It also suggests that municipalities were utilizing this financing mechanism to fund infrastructure and other projects that have the potential to generate income to cover the bond obligations.
The average maturity of municipal bonds issued in 2020 was 16.5 years.
The statistic “The average maturity of municipal bonds issued in 2020 was 16.5 years” indicates that when considering all municipal bonds that were issued in the year 2020, the average amount of time until the bonds reach maturity or their expiration date was 16.5 years. This suggests that, on average, investors in municipal bonds issued in 2020 can expect to hold onto these investments for approximately 16.5 years before the bonds are due for repayment by the issuing municipality. Maturity is an important factor to consider when investing in bonds as it affects the level of risk and potential returns associated with the investment.
The largest municipality to declare bankruptcy in the U.S. was Puerto Rico, with $70 billion in debt.
The statistic that the largest municipality to declare bankruptcy in the U.S. was Puerto Rico with $70 billion in debt highlights the significant financial crisis faced by the U.S. territory. Puerto Rico’s debt burden reached unsustainable levels due to a combination of factors including economic struggles, high levels of government spending, and a reliance on borrowing to cover budget shortfalls. The bankruptcy filing in 2017 marked a historic event as the largest municipal debt restructuring in U.S. history, with far-reaching implications for Puerto Rico’s residents, businesses, and government services. This statistic underscores the challenges of managing debt and fiscal responsibility, particularly for entities operating within complex economic and political systems.
Only about 0.02% of rated municipal bonds default.
This statistic indicates that a very small proportion of rated municipal bonds default, with only about 0.02% of them experiencing default. Municipal bonds are debt securities issued by state and local governments to raise funds for various public projects. The low default rate of 0.02% suggests that investing in rated municipal bonds is relatively safe and offers a low risk of experiencing a default event. Investors may find comfort in knowing that the vast majority of these bonds are successfully repaid as scheduled, providing a stable source of income. This statistic underscores the overall creditworthiness of municipal bonds and the importance of credit ratings in evaluating the risks associated with these investments.
The largest category of municipal bonds issued in 2020 was General Purpose at $82.5 billion.
The statistic “The largest category of municipal bonds issued in 2020 was General Purpose at $82.5 billion” indicates that out of all types of municipal bonds issued in 2020, the category of General Purpose bonds had the highest total amount of issuance, totaling $82.5 billion. Municipal bonds are debt securities issued by state and local governments to fund public projects, such as infrastructure improvements, schools, hospitals, and other general government purposes. The significant issuance of General Purpose bonds in 2020 suggests that governments were actively seeking funding for a wide range of public projects and services during that year. This statistic highlights the importance of General Purpose bonds as a key source of financing for various government activities at the local level.
Only 5% of municipalities rated by Moody’s in 2019 had a negative outlook.
The statistic “Only 5% of municipalities rated by Moody’s in 2019 had a negative outlook” means that a small proportion of the municipalities assessed by Moody’s, a credit rating agency, were given a negative outlook for their financial situation or creditworthiness in 2019. This suggests that the majority of municipalities evaluated were considered to have stable or positive financial outlooks, indicating a generally favorable assessment by Moody’s. A negative outlook could indicate potential financial challenges or risks for the municipality, such as budget deficits, declining revenues, or increased debt levels. Overall, this statistic highlights the relative stability and strength of the financial health of the municipalities rated by Moody’s in 2019.
References
0. – https://www.www.investopedia.com
1. – https://www.financedata.org
2. – https://www.www.fool.com
3. – https://www.www.bondbuyer.com
4. – https://www.theconversation.com
5. – https://www.www.spglobal.com
6. – https://www.www.sifma.org
