- State and local debt sales set to fall about 40% in September
- Bank of America cuts 2022 issuance forecast to $420 billion
Municipal-bond investors aren’t the only ones getting hurt by the bear market. Cities and Wall Street bankers alike are also feeling the pinch as the volume of deals in the $4 trillion market tumbles.
State and local debt sales are poised for a monthly decline of roughly 40% to about $24 billion in September, according to data compiled by Bloomberg. It would be the lowest monthly volume of debt sales since November 2020, the data show, even though September is typically a busy month for debt sales.
Rising interest rates are making it less attractive for municipalities to borrow for new projects or refinance existing debt. Plus, a volatile Treasury market, which the muni market tends to follow, also has cities sitting on the sidelines.
Bloomberg Markets
By Amanda Albright and Marvis Gutierrez
September 29, 2022