Statistics Reports News Today

A substantial drop in new money volume sets California and the Far West apart from the the country.

Spending on climate proofing infrastructure and other green capital developments increased 68% while overall volume tumbled 13% in the region.

Midwest borrowing last year went from 11% year-over-year growth in the first quarter to a 48% plunge in the fourth quarter.

The transportation bond sector may see the greatest growth in 2023 as a result of the infrastructure act, one analyst said.

Total volume in 2022 was at $389.094 billion in 9,123 deals, down 19.5% from the $483.358 billion in 13,130 deals in 2021, according to Refinitiv data.

Rising interest rates depressed refunding opportunities, but new money issuance rose amid demand for infrastructure to serve the region's growing population.

Healthy coffers, revenue growth, and strong market technicals led to declining need for short-term borrowing among municipalities last year.

"The large taxable refunding or combined transactions were accomplished earlier in the year when rates were relatively low," says John Hallacy.

New-money volume was off in the Golden State and across the Far West, but refunding volume was down even more.

Municipal bond issuers in the Southeast sold $40.7 billion of bonds in the first half of this year, a 6.3% year-over-year increase.