Bond volume

The supply-demand imbalance for muni investors is more acute than usual after issuers accelerated deals ahead of the new tax law.

Issuers rushing to close PABs and refunding deals propelled issuance past the single-month record set before 1986 tax reform.

The new tax law and imminent scarcity threaten to change market dynamics for muni buyers in 2018.

The year was marked by price fluctuations, yield curve flattening, spread compression, credit quality concerns, and other stresses.

Investors plan to make the most of the volume blitz and higher yields in the last month of the year, as issuers rush to market ahead of a sweeping tax law overhaul.

The possibility of the municipal market losing both advance refundings and private activity bonds brought a spike in issuance that's likely to extend into December.

More states and localities moved ahead with infrastructure financings in October, as issuers gained confidence the municipal tax exemption will remain in place.

Issuance of municipal bonds fell 33.9% to $26.7 billion compared to $40.4 billion in September 2016.

Volume shrank from August 2016, when the market was on a record-breaking run.

Regional bond issuance slipped by 31% in the first half and volume was down sharply in Florida.

Refunding deals were down substantially and new money volume also slipped.

A big drop-off in Texas and a decline in refundings took a bite out of the municipal bond business in the Southwest.

The region's slipping volume reflected a national trend.

Primary municipal bond market volume is expected to inch up to $7.3 billion, as analysts expect the muni market to stay on a path of suppressed supply and deep demand.

Municipal bond volume ended the month of July down 20% as refundings plummeted.

Bank of America Merrill Lynch used a big second quarter to overtake Citi at the top of the municipal league tables, while Morgan Stanley, RBC Capital Markets and Goldman Sachs moved up in the first half rankings.

Muni analysts pointed to June's uptick in volume as a sign that issuance may start to rebound.