Municipal Bond Market Monthly
Janney Fixed Income Strategy
April 6, 2015
Municipal Bond Market Credit Analyst Survey – First Annual
• The most important issue/trend facing the municipal bond market is currently Public Pensions
(funding levels, POBs). 86% of municipal credit analysts polled included the category in their
top five, according to our survey results.
• Over half (61%) of analysts surveyed believe state and local government credit quality has
recovered from the Great Recession. But, a total of 39% think they have not recovered in one
form or another: (22%) not recovered, (8%) are undecided and (9%) answered “Not Yet”.
• 57% of analysts polled have a “very” or “somewhat” favorable opinion of ratings from Moody’s
and Fitch. Kroll’s total favorability was only 7%. 66% of analysts surveyed have an unfavorable,
undecided or “do not consider” Kroll ratings.
• We collected responses from 162 municipal bond credit analysts during our survey. Over half of
the replies (63%) were from buy-side analysts. The majority describe themselves as Generalists
(59%) or as analysts who specialize in Tax-Backed (30%) bonds.
• California was upgraded by Fitch; Connecticut’s outlook was lowered by S&P; Louisiana’s outlook
was lowered by S&P; and Puerto Rico was downgraded by all three rating agencies.