Municipal Bond Credit Report

Transcription

1 Table of Contents Municipal Bond Credit Report Second Quarter 2018 [August 2018] 1

2 Table of Contents Table of Contents Market Summary... 3 Charts & Data... 9 Credits SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry s nearly 1 million employees, we advocate on legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit This report is subject to the Terms of Use applicable to SIFMA s website, available at Copyright

3 Market Summary Market Summary According to Thomson Reuters, long-term public municipal issuance volume totaled $94.1 billion in the second quarter of 2018, an increase of 52.2 percent from the prior quarter ($61.8 billion) but a decline of 6.6 percent year-over-year (y-o-y) ($100.7 billion). Including private placements 1 ($3.0 billion), long-term municipal issuance for 2Q 18 was $97.1 billion. Year to date ending the second quarter, issuance volumes totaled $155.9 billion, well under the 10-year average of $179.0 billion in issuance in the first two quarters of the year. Tax-exempt issuance totaled $79.5 billion in 2Q 18, an increase of 44.6 percent q-o-q but a decline of 9.1 percent y-o-y. Year to date ending June, tax-exempt issuance totaled $134.5 billion. Taxable issuance totaled $8.1 billion in 2Q 18, an increase of 75.9 percent q-o-q but a decline of 14.9 percent y-o-y. Year to date ending June, taxable issuance totaled $12.7 billion. AMT issuance was $6.5 billion in 2Q 18, an increase of percent and 72.8 percent, respectively, q-o-q and y-o-y. Year to date ending June, AMT issuance totaled $8.7 billion. Source: Thomson Reuters Source: Thomson Reuters By use of proceeds, general purpose led issuance totals in 2Q 18 ($26.7 billion), followed by primary & secondary education ($16.2 billion), higher education ($8.2 billion), water & sewer facilities ($6.5 billion) and airports ($5.6 billion). Refunding volumes rose slightly to 21.9 percent of issuance in 2Q 18 from 19.4 percent 1 Private placement figures are excluded in charts and tables. 3

4 Market Summary in the prior quarter but remain well below the averages in prior years due to the elimination of advance refundings beginning in 2018 with the passage of the Tax Cuts and Jobs Act. 2 Source: ICI Source: ICE BAML Yields, Inflows, and Total Return Ratios of 10-year tax-exempt AAA GOs and similar-maturity Treasuries declined slightly in the second quarter on a q-o-q basis, averaging 84.8 percent in 2Q 18 from 85.9 percent in 1Q 18. According to the Investment Company Institute (ICI), second quarter net flow into long-term tax-exempt funds was positive although with reduced flows: there was $1.7 billion of net inflow in 2Q 18 compared to $11.2 billion of inflow from 1Q 18 and $9.7 billion of net inflow y-o-y. According to the ICE BofAML indices, municipals gained 0.9 percent in the second quarter of 2018, down from the 2.0 percent gain in 2Q 17. For the second quarter, the tobacco, health, and hospital sectors outperformed among the individual municipal sectors (a gain of 1.31 percent, 1.03 percent and 1.00 percent respectively) while single-family, pollution control, and power underperformed relative to other municipal sectors (a gain of 2 Percentages represent both full refundings and the half the dollar amount of deals that contain both refundings and new financing. 4

5 Market Summary 0.54 percent, 0.56 percent, and 0.76 percent, respectively). On the other hand, Build America Bonds (BABs) lost 0.04 percent in 2Q 18, but outperformed similarly-rated corporate bonds (a total return loss of 0.7 percent). Source: EMMA MSRB Source: FDIC, Federal Reserve Trading Activity Trading activity rose q-o-q to $12.0 billion daily in 2Q 18, a 5.4 percent increase from 1Q 18 ($11.4 billion) and was a 13.3 percent increase from 2Q 17 ($10.6 billion). By number of trades, however, trading activity declined 3.8 percent on a q-o-q basis but rose 1.3 percent on a y-o-y basis. Broker-Dealers and Holdings Bank holdings of municipal loans rose in 1Q 18 from the prior quarter to $191.0 billion (from $190.6 billion) while holdings of bonds declined to $363.4 billion (from $379.6 billion). ARS, FRN and VRDO Update Issuance of variable-rate demand obligations (VRDOs), puttable long-term municipal bonds with interest rates that reset periodically, remain relatively quiet in the second quarter. A total of $2.1 billion was issued in 2Q 18, a threefold increase q-o-q and an increase of 85.1 percent y-o-y. Year to date ending June, VRDO issuance totaled $2.5 billion, on track to match issuance volumes expected by respondents to the SIFMA Municipal Survey Outstanding volumes continue to decline, with $142.4 billion outstanding as of the end of June 2018, a slight increase of 0.1 percent q-o-q but a decline of 8.5 percent from June

6 Market Summary Source: EMMA, Bloomberg, SIFMA Source: EMMA, Bloomberg, SIFMA The SIFMA Municipal Swap index, a seven-day high-grade market index comprised of tax-exempt VRDOs, ended June at 1.51 percent, averaging 1.46 percent throughout 2Q 18, 26 basis points wider than 1Q 18 s average (1.21 percent) and 63 basis points wider than 2Q 17 s average (0.84 percent). As of end-june 2018, $19.4 billion of VRDO liquidity facilities were scheduled to expire in 2018 with an additional $29.7 billion in 2019 for a total of $49.1 billion of liquidity facilities on 2,151 CUSIPs, a manageable rate given the relative stability of liquidity providers in this space. VRDO liquidity facility renewals with the same liquidity provider on approximately 785 unique CUSIPS averaged days from the original expiration date, rising slightly from days in 4Q 17. The median extension, however, continues to remain unchanged at 1 year (365 days). The average tenor of a liquidity facility of the entire universe of VRDOs was approximately 5.22 years, rising from the 5.18 years in 4Q 17. However, excluding self-liquidity deals (which typically have an expiration date set to the bond maturity date), the average remaining tenor of liquidity facilities in the entire VRDO universe was 4.02 years, down slightly from the 4.04 years in 4Q 17. Floating rate bond issuance rose quarter over quarter with $1.5 billion issued in 2Q 18, a 30.5 percent increase q-o-q and a 71.6 percent increase y-o-y. Year to date ending June, $2.2 billion of floating rate bonds were issued. At end-june, $78.9 billion of floating rate bonds were outstanding, a decline of 0.5 percent q-o-q and a 3.7 percent decline y-o-y. Both the LIBOR and SIFMA swap index remain popular benchmark indices for floating rate issuance. 6

7 Market Summary Auction rate securities (ARS) continue to remain in run off mode, with $12.5 billion of ARS outstanding end- June, a decline of 7.5 percent q-o-q and 17.2 percent y-o-y. While student loan ARS continues to remain an outsized portion (40 percent) of remaining ARS outstanding, all sectors of ARS have declined at approximately the same rate. State and Government Update State and government tax revenue rose substantially in late 2017, a growth attributable to the passage of the Tax Cuts and Jobs Act (TCJA) and other factors. Total state government revenue saw a 9.4 percent increase in the fourth quarter of 2017, compared to the previous growth average of 2.7 percent for the last four quarters. 3 General state sales tax grew at 4.8 percent, corporate income tax grew 12.5 percent, and motor fuel sales tax grew at 8.1% when compared to the same quarter a year ago. The TCJA prompted a spike in tax payments and property tax prepayments as high-income taxpayers sought to take advantage of expiring tax breaks. Additional factors contributed to the upsurge in tax payments in 2017: stabilizing commodities market benefited oil and mineral-dependent states, and more generally, the strong 2017 performance in the equities market also resulted in greater capital gains. The December 2017 deadline for hedge fund managers to repatriate accumulated offshore gains also induced a spike in tax revenue through increased estimated payments. Overall, the growth was mixed across different revenue sources and regions: while the Mid-Atlantic 4 saw a 19.7 percent rise y-o-y ending 4Q 17 in personal income tax collection, the Southeast 5 only rose 6.1 percent; the average increase in all regions was 15.1 percent. States still face fiscal uncertainty as they prepare to enact state legislation following the Supreme Court s ruling in South Dakota v. Wayfair, which permits states to collect tax from online retailers even if they lack a physical presence in the state. In April, Moody's Investors Service (Moody s) upgraded Hartford's rating to A2 from Caa3, reflecting the strong legal provisions governing the state's obligation to make contract assistance payments on the bonds pursuant to a contract for financial assistance and the state of Connecticut's agreement to pay off the city's $550 million in general obligation debt. While S&P Global Ratings (S&P) upgraded Hartford s rating to A from CCC to reflect the state's commitment to Hartford's annual debt payments, the agency also lowered the state s roughly $ Rockefeller Institute of Government, Robust State and Local Revenue Growth in the Fourth Quarter of 2017; Federal Tax Cut Clouds Horizon. April Mid-Atlantic states consist of New York, New Jersey, Pennsylvania, Delaware and Maryland. 5 Southeast states consist of Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Virginia, and West Virginia. 7

8 Market Summary billion of general obligation (GO) debt outstanding to A from A+, having concerns about the state s budget problems, underfunded pensions, high debt levels and a dim economic outlook. In May, Moody's downgraded St. Louis, MS's rating to Baa1 from A3, reflecting the city's weakened reserve position which will remain challenged in the near future despite revenue enhancements, while S&P downgraded Fort Worth, TX's rating to AA from AA+, reflecting the city's growing pension liability and weak budgetary performance. In terms of upgrades in May, Moody's upgraded Detroit, MI's GO rating to Ba3 from B1, reflecting the quickly improving financial position and operating liquidity of the city since its bankruptcy. In June, Moody s upgraded Florida's GO rating to Aaa from Aa1, reflecting a sustained trend of improvement in Florida's economy and finances, low state debt and pension ratios, and reduced near-term liability risks. This marks the first time that the state is triple-a rated from the three major rating agencies. For June downgrades, Moody's downgraded to Aa2 from Aa1 on the State of New Mexico's GO bonds due to the state's extremely large pension liabilities. Shortly after the end of the quarter, both Standard & Poor s and Fitch bond rating services upgraded the District of Columbia's GO bond rating from AA to AA+ due to the district s strong financial performance and a growing economy despite federal contraction. 8

9 Charts & Data Long-Term Municipal State Issuance, 2Q 18 Bond Type Tax Type Funding Type Refunding & State Total G.O. Revenue AMT Tax-Exempt Taxable New Financing Refinancing New Refinancing Refunding Alabama 1, , , Alas ka 0.0 American Samoa 0.0 Arizona Arkansas California 8, , , , , , ,271.6 Colorado 1, , Connecticut 1, , , , District of Columbia Delaware Florida 1, , , Georgia 1, , , , Guam 0.0 Hawaii 1, Idaho Illinois 2, , , ,349.9 Indiana Iowa Kansas Kentucky 1, , , , Louisiana Maine Maryland 1, , , , Massachusetts 1, , , , Michigan 1, , Minnesota 1, , , , Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York 8, , , , , , ,250.5 North Carolina North Dakota Ohio 2, , , , , Oklahoma 2, , , , Oregon Pennsylvania 2, , , , Puerto Rico 0.0 Rhode Island South Carolina South Dakota Tennessee Texas 5, , , , , , Utah 1, , Vermont Virgin Islands 0.0 Virginia 1, , , Washington 1, , West Virginia Wisconsin 1, , , Wyoming 0.0 ALL 61, , , , , , , , ,844.1 QoQ -54.6% -42.7% -61.4% -59.0% -53.9% -59.9% -15.9% N/A -66.1% -86.3% YoY -28.5% -27.0% -29.7% -19.6% -28.0% -36.5% 12.8% N/A -64.7% -64.9% 9

10 Coupon Type State Total Convertible Fixed Rate Linked Rate Variable Rate Long Variable Rate No Put Variable Rate Short (VRDO) Zero Alabama 1, Alas ka 0.0 American Samoa 0.0 Arizona Arkansas California 8, , Colorado 1, , Connecticut 1, , District of Columbia Delaware Florida 1, , Georgia 1, Guam 0.0 Hawaii 1, , Idaho Illinois 2, , Indiana Iowa Kansas Kentucky 1, Louisiana Maine Maryland 1, , Massachusetts 1, , Michigan 1, , Minnesota 1, , Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York 8, , North Carolina North Dakota Ohio 2, , Oklahoma 2, , Oregon Pennsylvania 2, , Puerto Rico 0.0 Rhode Island South Carolina South Dakota Tennessee Texas 5, , Utah 1, , Vermont Virgin Islands 0.0 Virginia 1, , Washington 1, , West Virginia Wisconsin 1, , Wyoming 0.0 ALL 61, , , QoQ -54.6% % -55.6% -11.6% -3.3% % -74.6% -50.6% YoY -28.5% % -30.2% -27.6% 132.0% -50.4% -42.8% 10

11 Long Term Municipal Issuance by General Use of Proceeds Use of Proceeds 1Q'17 4Q'17 1Q'18 Q-o-Q Y-o-Y Airports 3, , , % -32.5% Assisted Living % 60.9% Bridges 2, , % -86.0% Childrens hospital % 57.8% Churches Temples and Mosques % Civic & convention centers % 424.2% Combined utilities % 10.5% Cont Care Retirement Community , % -75.2% Correctional facilities % 20.0% Economic development 1, , , % -17.2% Fire stations & equipment % -16.2% Flood control % -53.5% Gas , , % % General acute care hospital 4, , , % -44.4% General Medical % % General purpose /public improvement 21, , , % -20.7% Government buildings % 253.4% Higher education 12, , , % -65.5% Industrial development % Libraries & museums % -63.8% Mass transportation 3, , , % -36.3% Multi family housing 1, , % -35.7% Nursing homes % 35.5% Office buildings % Other education % 1.7% Other recreation % 26.2% Parking facilities % -1.4% Parks, Zoos & Beaches % -47.1% Police stations & equipment % -55.6% Pollution control % % Primary & secondary education 18, , , % -21.1% Public power 1, , , % -34.3% Sanitation % -8.7% Seaports /marine terminals % -64.0% Single family housing 1, , , % -36.0% Single speciality hospital % -97.6% Solid waste % 4.1% Stadiums & sports complexes % 216.5% Student loans % % Telecommunications % -20.8% Theatres % 245.5% Toll roads, highways & streets 2, , , % 14.7% Water & sewer facilities 6, , , % -37.1% ALL 86, , , % -28.5% 11

12 Build America Bonds Source: Wells Fargo Source: Wells Fargo Supply, Yield Curves, Total Return, Spreads & Ratios Source: Bond Buyer 12

13 Source: MMA Source MMA Source: Markit Source: ICE BAML 13

14 Source: EMMA, Bloomberg, SIFMA Source: EMMA, Bloomberg, SIFMA By Type of Provider ($ Millions) Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Bank , , , , , , , , , , ,651.3 Corporate/Other US Agency By Number of Facilities # CUSIPs By Type of Provider ($ Millions) Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Bank 1, , , , , , , , , , ,441.9 Corporate/Other US Agency By Number of Facilities # CUSIPs By Type of Provider ($ Millions) Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Bank 2, , , , , , , , , , ,068.8 Corporate/Other US Agency By Number of Facilities # CUSIPs By Type of Provider ($ Millions) Bank 13, , , Corporate/Other , ,206.9 US Agency By Number of Facilities # CUSIPs Source: EMMA, Bloomberg, SIFMA 14

15 Trading Summary Total Number of Trades # of Trades Par Amount (Millions) Customer Bought Customer Sold Inter-Dealer Trade All Trades Customer Bought Customer Sold Inter-Dealer Trade All Trades 2018:Q1 981, , ,140 2,565,633 $321,591 $243,838 $127,253 $692, :Q2 1,002, , ,839 2,589,522 $376,773 $249,981 $139,485 $766,239 %Change 2% -2% 2% 1% 17% 3% 10% 11% # of Trades # of Trades Par Amount (Millions) 500, , , , ,000 1,000,000 1,000,000+ All Trades 0-100, , ,000 1,000,000 1,000,000+ All Trades 2018:Q1 82% 12% 2% 4% 2,565,633 10% 11% 7% 72% $692, :Q2 81% 13% 2% 4% 2,589,522 9% 11% 6% 74% $766,239 Trades by Sector Education Health Utility Various Purpose Transportation Tax-Revenue Other Total (Millions) 2018:Q1 18% 11% 12% 12% 8% 10% 30% $692, :Q2 17% 10% 12% 11% 8% 9% 33% $766,239 Trades by Maturity 1 Year or Less 1+ Year to 5 Years 5+ Years to 10 Years 10+ Years to 20 Years 20+ Years Total (Millions) 2018:Q1 5% 11% 16% 34% 33% $692, :Q2 6% 11% 15% 34% 34% $766,239 Trades by Source of Repayment Revenue General Obligation Double Barrel Not Available Total (Millions) 2018:Q1 69% 28% 2% 1% $692, :Q2 69% 26% 2% 2% $766,239 Trades by Coupon Type Fixed Rate Variable Rate Zero Coupon Not Available Total (Millions) 2018:Q1 61% 36% 3% 0% $692, :Q2 62% 36% 3% 0% $766,239 Municipal CDS Source: EMMA MSRB 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 3/31/18 6M % Change 3/31/18 10Y % Change CA California % -38.7% CT Connecticut % 81.4% DE Delaware % 9.8% FL Florida % -22.2% MA Massachusetts % -6.5% MD Maryland % 11.6% MI Michigan % -13.3% MN Minnesota % -13.9% NC North Carolina % 0.0% NJ New Jersey % -26.8% NV Nevada % 41.5% NY New York % -5.3% OH Ohio % 7.6% PA Pennsylvania % 36.7% RI Rhode Island % 1.8% SC South Carolina % 10.7% TX Texas % 2.0% UT Utah % 9.6% VA Virginia % 10.1% WA Washington % -8.5% WI Wisconsin % -3.1% NYC New York City % 7.7% Source: CMA Datavision 15

16 Current State GO Rating State Moody's S&P Fitch State Moody's S&P Fitch Alabama Aa1 AA AA Montana Aa1 AA AA+ Alas ka Aa3 AA AA Nebraska American Samoa Nevada Aa2 AA AA+ Arizona New Hampshire Aa1 AA AA+ Arkansas Aa1 AA New Jersey A3 A- A California Aa3 AA- AA- New Mexico Aa2 AA Colorado New York Aa1 AA+ AA+ Connecticut A1 A A+ North Carolina Aaa AAA AAA District of Columbia Aaa AA+ AA+ North Dakota Delaware Aaa AAA AAA Ohio Aa1 AA+ AA+ Florida Aaa AAA AAA Oklahoma Aa2 AA AA Georgia Aaa AAA AAA Oregon Aa1 AA+ AA+ Guam BB- Pennsylvania Aa3 A+ AA- Hawaii Aa1 AA+ AA Puerto Rico Ca D D Idaho Rhode Island Aa2 AA AA Illinois Baa3 BBB- BBB South Carolina Aaa AA+ AAA Indiana South Dakota Iowa Tennessee Aaa AAA AAA Kansas Texas Aaa AAA AAA Kentucky Aa3 A+ Utah Aaa AAA AAA Louisiana Aa3 AA- AA- Vermont Aaa AA+ AAA Maine Aa2 AA Virgin Islands Maryland Aaa AAA AAA Virginia Aaa AAA AAA Massachusetts Aa1 AA AA+ Washington Aa1 AA+ AA+ Michigan Aa1 AA AA West Virginia Aa2 AA- AA Minnesota Aa1 AAA AAA Wisconsin Aa1 AA AA+ Mississippi Aa2 AA AA Wyoming Missouri Aaa AAA AAA Source: Moody s, Standard and Poor s, Fitch Ratings 16

17 Outstanding Municipal Debt Outstanding by Type, Maturity and Security Type 6 $ Millions State Total Outstanding G.O. Revenue Due in 13 Months Long-Term 2018:Q1 Total Outstanding % Change AK Alas ka 10, , , , , % AL Alabama 38, , , , , , % AR Arkansas 14, , , , , % AS American Samoa % AZ Arizona 57, , , , , , % CA California 594, , , , , , % CO Colorado 65, , , , , , % CT Connecticut 52, , , , , , % DC District of Columbia 32, , , , , % DE Delaware 8, , , , , % FL Florida 145, , , , , , % GA Georgia 76, , , , , , % GU Guam 3, , , , % HI Hawaii 20, , , , , , % IA Iowa 21, , , , , , % ID Idaho 7, , , , , , % IL Illinois 171, , , , , , % IN Indiana 47, , , , , , % KS Kansas 27, , , , , , % KY Kentucky 35, , , , , , % LA Louisiana 37, , , , , , % MA Massachusetts 107, , , , , , % MD Maryland 61, , , , , , % ME Maine 8, , , , , % MI Michigan 76, , , , , , % MN Minnesota 54, , , , , , % MO Missouri 48, , , , , , % MS Mississippi 17, , , , , % MT Montana 4, , , , , % NC North Carolina 52, , , , , , % ND North Dakota 6, , , , , % NE Nebraska 20, , , , , , % NH New Hampshire 8, , , , , % NJ New Jersey 121, , , , , , % NM New Mexico 14, , , , , , % NV Nevada 26, , , , , , % NY New York 411, , , , , , % OH Ohio 112, , , , , , % OK Oklahoma 22, , , , , , % OR Oregon 42, , , , , , % OT Other Territories 11, , , , , % PA Pennsylvania 139, , , , , , % PR Puerto Rico 99, , , , , , % RI Rhode Island 11, , , , , % SC South Carolina 39, , , , , , % SD South Dakota 5, , , , , % TN Tennessee 43, , , , , , % TT Trust Territories % TX Texas 369, , , , , , % UT Utah 25, , , , , , % VA Virginia 69, , , , , , % VI Virgin Islands 2, , , , % VT Vermont 4, , , , % WA Washington 93, , , , , , % WI Wisconsin 56, , , , , , % WV West Virginia 11, , , , , % WY Wyoming 2, , , , % TOTAL (6/30/2018) 3,669, ,202, ,467, , ,459, ,649, % TOTAL (3/31/2018) 3,649, ,193, ,455, , ,453,028.7 % Change 0.6% 0.8% 0.5% 7.0% 0.2% 6 As of the first quarter 2017, outstanding totals includes both short- and long-term municipal debt and now includes all refunded (inclusive of prerefunded) debt but does not include municipal derivatives. Data prior to 1Q 17 excluded refunded debt from general totals. Due in 13 months looks at original maturity and will not include securities with short puts unless original maturity is within 13 months. Differences between this data and the Federal Reserve Flow of Funds are due to underlying database differences (Fed: Mergent; these tables: Bloomberg) as well as the growth of the municipal direct loan market. Fixed rate debt does not include those multimodal bonds that are currently in long-term fixed rate mode. 17

18 Outstanding by Tax Status and Coupon $ Millions State Total Outstanding Tax-Exempt BQ AMT Taxable Fixed Zero FRN Other AK Alas ka 10, , , , ,800.1 AL Alabama 38, , , , , ,730.8 AR Arkansas 14, , , , , AS American Samoa AZ Arizona 57, , , , , ,055.4 CA California 594, , , , , , , , ,709.8 CO Colorado 65, , , , , , , , ,812.1 CT Connecticut 52, , , , , , , ,854.2 DC District of Columbia 32, , , , , , ,680.7 DE Delaware 8, , , , ,340.3 FL Florida 145, , , , , , , ,765.5 GA Georgia 76, , , , , , , , ,664.2 GU Guam 3, , , HI Hawaii 20, , , , , IA Iowa 21, , , , , ,102.7 ID Idaho 7, , , IL Illinois 171, , , , , , , , ,699.6 IN Indiana 47, , , , , , ,553.4 KS Kansas 27, , , , , KY Kentucky 35, , , , , , , ,282.9 LA Louisiana 37, , , , , , , , ,990.6 MA Massachusetts 107, , , , , , , , ,068.6 MD Maryland 61, , , , , ,059.4 ME Maine 8, , , MI Michigan 76, , , , , , , , ,451.0 MN Minnesota 54, , , , , , ,044.4 MO Missouri 48, , , , , , ,952.0 MS Mississippi 17, , , , , ,982.1 MT Montana 4, , , NC North Carolina 52, , , , , ,084.1 ND North Dakota 6, , , NE Nebraska 20, , , , , ,357.4 NH New Hampshire 8, , , , NJ New Jersey 121, , , , , , , , ,004.3 NM New Mexico 14, , , , , ,007.1 NV Nevada 26, , , , , , ,972.7 NY New York 411, , , , , , , , ,283.0 OH Ohio 112, , , , , , , , ,340.9 OK Oklahoma 22, , , , , OR Oregon 42, , , , , , , ,773.5 OT Other Territories 11, , , ,130.9 PA Pennsylvania 139, , , , , , , , ,702.9 PR Puerto Rico 99, , , , , , ,016.6 RI Rhode Island 11, , , , , SC South Carolina 39, , , , , , , ,654.6 SD South Dakota 5, , , TN Tennessee 43, , , , , , ,915.7 TT Trust Territories TX Texas 369, , , , , , , , ,785.2 UT Utah 25, , , , , , ,021.2 VA Virginia 69, , , , , , ,495.8 VI Virgin Islands 2, , , VT Vermont 4, , , ,343.7 (565.2) WA Washington 93, , , , , , , ,720.5 WI Wisconsin 56, , , , , , , ,247.7 WV West Virginia 11, , , , , ,324.4 WY Wyoming 2, , , TOTAL (6/30/2018) 3,669, ,886, , , , ,009, , , ,389.0 TOTAL (3/31/2018) 3,649, ,868, , , , ,992, , , ,713.7 % Change 0.6% 0.6% -0.8% 2.2% 0.2% 0.6% -0.6% -0.5% 1.7% 18

19 Addendum Tables Build America Bonds, Prerefunded, Derivatives and Insured $ Millions State Total Outstanding BAB Only VRDO Only ARS Only Prerefunded Only All Refunded Derivatives Only Insured AK Alas ka 10, , AL Alabama 38, , , , ,935.9 AR Arkansas 14, ,703.3 AS American Samoa 76.1 AZ Arizona 57, , , , , , ,681.4 CA California 594, , , , , , , ,291.2 CO Colorado 65, , , , , , ,812.6 CT Connecticut 52, , , , , , ,598.2 DC District of Columbia 32, , , , , , ,250.1 DE Delaware 8, , FL Florida 145, , , , , , ,282.9 GA Georgia 76, , , , , , ,626.9 GU Guam 3, HI Hawaii 20, , , , IA Iowa 21, , , , ,238.5 ID Idaho 7, IL Illinois 171, , , , , , ,191.4 IN Indiana 47, , , , , , ,066.8 KS Kansas 27, , , , ,276.7 KY Kentucky 35, , , , , ,761.2 LA Louisiana 37, , , , ,738.8 MA Massachusetts 107, , , , , , ,276.0 MD Maryland 61, , , , , ,405.5 ME Maine 8, MI Michigan 76, , , , , , ,868.8 MN Minnesota 54, , , , ,544.0 MO Missouri 48, , , , , , ,001.5 MS Mississippi 17, , , , ,429.7 MT Montana 4, NC North Carolina 52, , , , , , ,655.6 ND North Dakota 6, NE Nebraska 20, , , NH New Hampshire 8, NJ New Jersey 121, , , , , , ,440.1 NM New Mexico 14, , NV Nevada 26, , , , ,898.8 NY New York 411, , , , , , , ,591.6 OH Ohio 112, , , , , , ,400.7 OK Oklahoma 22, , , OR Oregon 42, , , ,146.7 OT Other Territories 11, , PA Pennsylvania 139, , , , , , ,342.9 PR Puerto Rico 99, , , ,706.9 RI Rhode Island 11, , ,453.5 SC South Carolina 39, , , ,209.8 SD South Dakota 5, TN Tennessee 43, , , , , ,564.0 TT Trust Territories TX Texas 369, , , , , , , ,257.9 UT Utah 25, , , , , ,681.4 VA Virginia 69, , , , , ,114.0 VI Virgin Islands 2, VT Vermont 4, WA Washington 93, , , , , , ,748.7 WI Wisconsin 56, , , , , , ,590.1 WV West Virginia 11, WY Wyoming 2, TOTAL (6/30/2018) 3,669, , , , , , , ,438.2 TOTAL (3/31/2018) 3,649, , , , , , , ,406.9 % Change 0.6% -0.1% 0.1% -8.0% -6.1% -5.5% 0.0% -3.5% 19

20 Addendum Tables Rating 7 $ Millions State Total Outstanding Rated AAA AA A BBB HY AK Alas ka 10, , , , AL Alabama 38, , , , , ,726.4 AR Arkansas 14, , , , AS American Samoa AZ Arizona 57, , , , , , ,410.4 CA California 594, , , , , , ,634.3 CO Colorado 65, , , , , , CT Connecticut 52, , , , , , DC District of Columbia 32, , , , , DE Delaware 8, , , , FL Florida 145, , , , , , ,399.0 GA Georgia 76, , , , , , GU Guam 3, , (431.6) , HI Hawaii 20, , , , IA Iowa 21, , , , , ,321.6 ID Idaho 7, , , , IL Illinois 171, , , , , , ,662.4 IN Indiana 47, , , , , , KS Kansas 27, , , , , KY Kentucky 35, , , , , , ,182.5 LA Louisiana 37, , , , , , MA Massachusetts 107, , , , , , MD Maryland 61, , , , , , ME Maine 8, , , , MI Michigan 76, , , , , , ,585.4 MN Minnesota 54, , , , , MO Missouri 48, , , , , , MS Mississippi 17, , , , , MT Montana 4, , , , NC North Carolina 52, , , , , , ND North Dakota 6, , , , NE Nebraska 20, , , , , NH New Hampshire 8, , , , NJ New Jersey 121, , , , , , ,922.7 NM New Mexico 14, , , , , NV Nevada 26, , , , NY New York 411, , , , , , ,234.9 OH Ohio 112, , , , , , ,912.4 OK Oklahoma 22, , , , , ,514.1 OR Oregon 42, , , , , OT Other Territories 11, , , , PA Pennsylvania 139, , , , , , ,238.4 PR Puerto Rico 99, , (366.3) 2, , ,659.0 RI Rhode Island 11, , , , ,730.5 SC South Carolina 39, , , , , SD South Dakota 5, , , , , TN Tennessee 43, , , , , , TT Trust Territories TX Texas 369, , , , , , ,253.8 UT Utah 25, , , , , VA Virginia 69, , , , , , ,492.9 VI Virgin Islands 2, , ,341.6 VT Vermont 4, , , , WA Washington 93, , , , , , WI Wisconsin 56, , , , , , WV West Virginia 11, , , , ,565.7 WY Wyoming 2, , TOTAL (6/30/2018) 3,669, ,018, , ,495, , , ,445.8 TOTAL (3/31/2018) 3,649, ,989, , ,464, , , ,098.0 % Change 0.6% 1.0% 2.3% 2.1% -1.0% 1.0% -3.3% 7 Rating based on the lowest long-term rating assigned to the bond by Fitch Ratings, Moody s Investor Services, or Standard and Poor s; split-rated debt are therefore included in the HY category. 20

21 Credits Credits SIFMA Research Kyle Brandon Managing Director, Head of Research Sharon Sung Vice President, Research Rohan Desai Municipal ULF Forum Yuki Lau Municipal ULF Forum SIFMA Municipal Leslie Norwood Managing Director, Associate General Counsel, Co-Head of the Municipal Division Michael Decker Managing Director, Co-Head of the Municipal Division 21