(Reuters) – Citigroup was the top underwriter of U.S. municipal bonds in the first quarter of 2014 as total supply shrank to $60.4 billion, down 25.7 percent from the same period in 2013, Thomson Reuters reported on Tuesday.
The investment bank underwrote 75 deals totaling $8.16 billion, according to the report. Bank of America Merrill Lynch (BAC.N) ranked second with 68 deals totaling $6.17 billion.
Puerto Rico was the biggest issuer in the quarter with a $3.5 billion bond sale last month aimed at shoring up the commonwealth’s shaky finances. California ranked second with $1.8 billion of bonds.
Insured bonds totaled $2.77 billion, up 28.4 percent from the first quarter of 2013. Assured Guaranty Municipal (AGO.N) and its subsidiary Municipal Assurance Corp held onto the top spot among insurers with 117 deals totaling $1.43 billion. Build America Mutual ranked second with 135 deals totaling $1.33 billion.
Meanwhile, bonds backed by letters of credit plummeted to $402.8 million in the quarter, a 91.4 percent drop from the same period in 2013, Thomson Reuters reported. Royal Bank of Canada was the top provider, followed by the Bank of New York Mellon.