Northeast in a nutshell: Pandemic, low rates drove a memorable 2020
March 1, 2021 2:55 PM
A big year for muni bond sales in the Northeast Corridor
Northeast municipal issuers sold $129.99 billion of debt last year amid the disruption of the COVID-19 pandemic, a 14.7% increase from 2019.
Low rates fueled taxable refundings
“There’s no limit to taking out tax-exempt with taxable,” said Howard Cure, director of municipal bond research for Evercore Wealth Management. “During this period, taxable rates were low enough to make it economically feasible.” Taxable municipal issuance was up 44% in the Northeast.
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New York State led the way in 2020
Issuers from New York State dominated the ranking of biggest issuers from the region, which encompasses 11 states, the District of Columbia and two territories.
MTA turned to big borrowing amid troubled times
New York’s Metropolitan Transportation Authority finished second among issuers, but only because its borrowings from the Federal Reserve’s Municipal Liquidity Facility weren’t counted.
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BofA Securities leads Northeast league table
BofA Securities topped the table of Northeast senior managers, credited by Refinitiv with underwriting $21.7 billion of bonds in 127 transactions.
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COVID-19 sent New Jersey to the municipal market in a big way
New Jersey had the region's single-biggest deal, a $3.7 billion tax-exempt emergency GO offering spearheaded by Gov. Phil Murphy, to cover pandemic-driven budget shortfalls.
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Gotham tops the issuer table
New York City was the top issuer in the regional list for volume with $6.6 billion of general obligation bonds sold in 14 transactions.
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