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Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
Bloomberg Municipal Market Q2 StatBook
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Bloomberg Municipal Market Q2 StatBook

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Bloomberg Brief Municipal Market is a leading daily newsletter read by over 11,000 each day providing proprietary news, data and analysis on the $3.7 trillion municipal market.

Bloomberg Brief Municipal Market is a leading daily newsletter read by over 11,000 each day providing proprietary news, data and analysis on the $3.7 trillion municipal market.

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  • 1. 2Q 2013 STAT Book AUG. 1, 2013 MUNICIPAL MARKET <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< Sponsored by Change comes at the margin, and in municipals during the second quarter of 2013 this meant certain issuers deciding not to honor their full faith and credit general obligations. States and municipalities borrowed less as interest rates rose. The Story of the Year, the Detroit bankruptcy, was waiting in the wings.
  • 2. Quarter in review The most disturbing news of the second quarter was that certain municipalities, and even one state’s lawmakers, were having second thoughts about paying their general obligation debt. Page 2 The Ratio Yields soared after Fed chair- man Bernanke said that the Fed would begin to curtail its monthly bond-buying program. Tax-exempts yielded 100%-plus of Treasuries. Page 4 YIELDS CLIMB Benchmark 10-year AAA municipal-bond yields surged to 2.78 percent at the end of the second quarter from 2 percent at the beginning of the period, the big- gest jump since the three months through December 2010.Yields reached 2.96 percent on June 25, the highest since April 2011. Page 4 Volume Flags States and municipalities sold $188.4 billion in long- and short-term securities during the first half, down 11 percent from the $211.1 billion they sold during the same period in 2012. Just over 3 percent was insured. Page 5 By the billion Issuers sold four issues of $2 billion-plus and nine of at least $1 bil- lion during the first half. Page 5 who’s #1? Bank of America Merrill Lynch was the top under- writer in 11 states, followed by JPMorgan, which led in nine. Fifteen different underwiters took the top spot somewhere in the market. Page 6 the winner is Bank of America Merrill Lynch was the top under- writer over all. The top 10 firms accounted for more than 70 percent of the bonds sold during the half. Page 8 Spreads shrink Underwriting spreads fell to $5.34 per $1,000 bond, down from $5.84 in 2012. North Dakota paid the most, New Jersey the least. Page 9 PERFORMANCE REVIEW During the worst quarterly rout since 2010, tobacco and housing debt were the only two segments to lose less than 2 percent, according to data from Barclays Plc. Page 10 rocky road Issuers defaulted on almost $7 billion in munis during the first half. There were only three Chapter 9 filings, none of them for what is com- monly considered a mu- nicipality. Detroit came later. Page 11 Contents Second Quarter In Review It used to be that a GO was a GO was a GO. Investors took the municipal general obligation full faith and credit pledge to mean just that: A municipality promised to do everything in its power to pay its debt. Even in the unlikely event of a bank- ruptcy, municipalities would pay their GO debt, although, as many bond lawyers pointed out, such debt usually wasn’t tied to a specific stream of revenue, like, for example, water and sewer bonds. This was a tradition. Investors relied on tradition, on market convention, and so states and municipalities borrowing money on their GO pledge did so on the cheapest terms. During the second quarter of 2013, it became apparent that the GO pledge, “sacrosanct,’’ and “inviolable’’ as many analysts deemed it, wasn’t quite all it was cracked up to be. If it wasn’t secured to a particular stream of cash, sorry, bondhold- ers, please join the unsecured creditors at the end of the line. There were exceptions, of course; in Muniland, there always are. Some states say specifically that GO bondholders have a statutory lien on taxes. Some lawyers insist that a GO bond by its very nature is secured by the tax base. What was starting to become apparent to many analysts, investors and students of the market was that some munici- palities in bankruptcy, some in financial distress (Harrisburg, Pennsylvania, and Detroit, which hadn’t yet declared bank- ruptcy) and some just because they were having second thoughts (the state of Rhode Island) either intended not to pay their GO debt in full or were thinking about it. This realization may have profound ef- fects on ratings, analysis and investment. The other thing that became apparent during the second quarter was that all good things must come to an end, includ- ing the Fed’s easy money policy. In June, Fed chairman Ben S. Bernanke said those days were not far off. Interest rates shot higher, and the ratio of tax-exempt to Treasury yields lodged over 100 percent. Analysts lowered their forecasts for 2013’s bond sales as opportunities for issuers to refinance outstanding debt dwindled. The Story of the Year lay somewhat in the future. The housing recovery ac- celerated, the high-yield muni market seemed to revive, a bridge in Washington collapsed signalling the inevitable hand- wringing over the nation’s crumbling in- frastructure should begin anew. Meredith Whitney’s long-awaited book, ‘Fate of the States’ was published. In July, Detroit filed the largest ever Chapter 9 municipal banbkruptcy. — Joe Mysak Bloomberg Brief Municipal Market Newsletter Ted Merz Executive Editor tmerz@bloomberg.net 212-617-2309 Bloomberg News William Glasgall Managing Editor wglasgall@bloomberg.net 212-617-3023 Municipal Market Joe Mysak Editor jmysakjr@bloomberg.net 212-617-2323 Reporter Brian Chappatta bchappatta1@bloomberg.net 212-617-0698 Contributing Sowjana Sivaloganathan, Analysts Bert Louis,Matthew Kelly Newsletter Nick Ferris Business Manager nferris2@bloomberg.net 212-617-6975 Advertising bbrief@bloomberg.net 212-617-6975 Reprints & Lori Husted Permissions lori.husted@theygsgroup.com 717-505-9701 To subscribe via the Bloomberg Terminal type BRIEF <go> or on the web at www.bloombergbriefs.com. To contact the editors:munimarket@bloomberg.net This newsletter and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints and permissions group listed above for more information © 2013 Bloomberg LP. All rights reserved. 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 2  1 2 3 4 5 6 7 8 9 10 11 12 
  • 3. Assured Guaranty File:4701_MysakQ2Stat_ExperienceJULY FIXED.indd Insertion: July 22, 2013 Due: July 17,2013 Size: 7.5'' X 8.8” EXPERIENCE GUARANTEED ASSURED GUARANTY CORP. ASSURED GUARANTY MUNICIPAL EMBRACE POSSIBILITIES, INVEST IN CERTAINTIES. Disciplined underwriting. Proven risk management. $12 billion in claims-paying resources. Assured Guaranty’s bond insurance increases market liquidity and supports market value for investors, while significantly reducing costs for thousands of America’s municipalities. Stronger, safer investments from the proven leader in municipal bond insurance. More at AssuredGuaranty.com Assured Guaranty Municipal Corp. and Assured Guaranty Corp. (and affiliates), New York, New York. AGM | AGC 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 3  1 2 3 4 5 6 7 8 9 10 11 12 
  • 4. Interest Rates The Ratio Surges After Bernanke Says End of Bond Buying in Sight Make an IMpact wIth BlooMBerg BrIef content Bloomberg Briefs provide dedicated licenses to reuse our content to help your business. We offer a full suite of products and services ranging from hardcopy and electronic reprints to plaques, permissions/licensing and photocopies. to find the solution that is right for you, contact us today at: 800 290 5460 x 100, email: bloombergbriefreprints@theygsgroup.com 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27 6/3 6/10 6/17 6/24 Yield(%) Date 10-Year Muni Yields Surge in Worst Quarter Since 2010 10-Year AAA Muni Yield Source: Bloomberg 85 90 95 100 105 110 115 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27 6/3 6/10 6/17 6/24 Percentage Date Muni-Treasury Ratio Ends Where it Started in 2Q 10-Year Muni-Treasury Ratio Source: Bloomberg The 10-year muni-Treasury ratio ended the second quarter of 2013 close to where it started — about 107 percent. The slump intensified after Fed Chair- man Ben S. Bernanke made comments during the penultimate week of June that the central bank planned to slow bond- buying this year and end purchases in mid-2014 if the economy improves. The average ratio since 2001 is about 93 percent, though in the past two years the figure has averaged 102 percent. — Brian Chappatta Benchmark 10-year AAA yields surged to 2.78 percent at the end of the second quarter from 2 percent at the beginning of the period, the biggest jump since the three months through December 2010. Yields reached 2.96 percent on June 25, the highest since April 2011. The day before, institutional bondholders put the most munis up for sale since at least 1996. Individuals pulled about $4.5 billion from mutual funds in the week through June 26, the most since at least 1992, when Lipper US Fund Flows data begins. The 10-year yield fell to as low as 1.76 percent on May 2 before climbing to 2013 highs by the end of the month. — Brian Chappatta Muni-Treasury Ratio Ends Where it Started in 2Q 10-Year Muni Yields Surge in Worst Quarter Since 2010 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 4  1 2 3 4 5 6 7 8 9 10 11 12 
  • 5. Issuers States, Localities Sold $188 Billion in Both Long and Short-Term Securities During First Half 0 10 20 30 40 50 60 Jan Feb March April May June Billions 2012 2013 Source: Bloomberg States and municipalities sold $188.4 bil- lion in short- and long-term securities, both fixed- and variable-rate, during the first half of 2013, down 11 percent from the $211.1 billion they sold during the same period in 2012. Issuance flagged in June after Fed chairman Ben S. Bernanke said the Fed would begin to phase out its easing policy later in the year and interest rates soared. --Joe Mysak Issuance Fell After Rates Rose Issue State Sale Date Book Running Lead Manager(s) Sale Method Deal Size ($millions) Bloomberg Market Sector California-Various Purpose CA 4/8/2013 Bank of America Merrill Negotiated 2,630 General Obligation California-Various Purpose CA 3/11/13 JP Morgan/Goldman Negotiated 2,472 General Obligation New Jersey Econ Dev Auth-Sch Facs NJ 1/21/13 Bank of America Merrill Negotiated 2,253 Appropriations Florida Hurricane Catastrophe FL 4/8/2013 Barclays Negotiated 2,000 Miscellaneous University of California Regents CA 2/25/13 JP Morgan/Bank of America Merrill Negotiated 1,594 Higher Education New Jersey Turnpike NJ 3/18/13 JP Morgan Negotiated 1,400 Toll Highways/Bridges/Tunnels Los Angeles-TRANS CA 6/24/2013 E.J. De La Rosa Negotiated 1,325 General Obligation Illinois IL 6/24/2013 Wells Fargo Bank Negotiated 1,300 General Obligation Posey County-Midwest Fertilizer IN 6/24/2013 Guggenheim Negotiated 1,259 Economic Development Iowa Fin Auth-IA Fertilizer IA 4/29/2013 Citigroup Negotiated 1,185 Economic Development JobsOhio Beverage System Liquor OH 1/28/13 JP Morgan/Citigroup Negotiated 1,106 Miscellaneous Tax New York City Transitional Finance NY 3/18/13 Wells Fargo/Citigroup Negotiated 1,001 Income Tax Los Angeles County-TRANS CA 6/3/2013 Goldman Negotiated 1,000 General Obligation New York City NY 2/25/13 Morgan Stanley/JP Morgan Competitive 973 General Obligation Missouri Hgr Ed Loan MO 5/22/13 Morgan Stanley Negotiated 956 Student Loans Pennsylvania PA 4/3/2013 Bank of America Merrill Competitive 950 General Obligation New York City NY 5/20/2013 Bank of America Merrill Negotiated 949 General Obligation New Jersey Transportation NJ 4/15/2013 Goldman Negotiated 877 Appropriations New York State Urban Dev NY 3/11/13 Wells Fargo/JP Morgan Negotiated 843 Income Tax Rutgers State Univ NJ 6/10/2013 Morgan Stanley Negotiated 827 Higher Education Source: Bloomberg Largest Debt Issuances First Half 2013 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 5  1 2 3 4 5 6 7 8 9 10 11 12 
  • 6. Underwriters Who’s Number 1 Underwriter? BofA Merrill is Tops in 11 States, JPM in 9 The following table shows the top underwriter in the 50 states, District of Columbia, and Guam. The figures are calculated upon all long-term debt issued in 2013 based on dated date, both fixed- and variable-rate, negotiated and competitive, with full credit given to the lead manager. The results show that Bank of America Merrill Lynch was the top underwriter in 11 states, followed by JPMorgan in nine and Citigroup in six. Fifteen different firms took the top spot somewhere in the municipal market. — Joe Mysak State Underwriter Issuance ($Millions) % of Issuance in State State Underwriter Issuance ($Millions) % of Issuance in State State Underwriter Issuance ($Millions) % of Issuance in State CA Total 26,744 1 Bk of America Merrill 5,171 19 2 JP Morgan 4,170 16 3 Piper Jaffray 2,657 10 NY Total 15,955 1 Citigroup 2,488 16 2 Wells Fargo 2,066 13 3 JP Morgan 1,920 12 TX Total 15,918 1 JP Morgan 2,307 14 2 Citigroup 1,916 12 3 Raymond James 1,495 9 NJ Total 8,576 1 Bk of America Merrill 2,992 35 2 JP Morgan 1,400 16 3 Citigroup 1,203 14 FL Total 7,150 1 Barclays 2,066 29 2 Citigroup 1,112 16 3 Wells Fargo 916 13 OH Total 6,951 1 JP Morgan 1,390 20 2 Barclays 1,204 17 3 Stifel 779 11 PA Total 5,987 1 RBC Capital 1,277 21 2 Bank of America Merrill 1,228 21 3 Barclays 700 12 IL Total 5,819 1 JP Morgan 1,015 17 2 Bank of America Merrill 862 15 3 Barclays 636 11 NC Total 4,899 1 Bk of America Merrill 1,747 36 2 Wells Fargo 1,157 24 3 Citigroup 659 13 VA Total 4,618 1 Citigroup 1,274 28 2 JP Morgan 1,154 25 3 Bank of America Merrill 497 11 WA Total 4,171 1 Citigroup 934 22 2 JP Morgan 879 21 3 D.A. Davidson 538 13 AZ Total 3,905 1 JP Morgan 895 23 2 Bank of America Merrill 778 20 3 RBC Capital 679 17 WI Total 3,792 1 JP Morgan 867 23 2 Morgan Stanley 615 16 3 Robert W. Baird 429 11 MA Total 3,760 1 Bk of America Merrill 1,153 31 2 JP Morgan 668 18 3 Morgan Stanley 644 17 MD Total 3,594 1 JP Morgan 1,214 34 2 Citigroup 1,156 32 3 Bank of America Merrill 948 26 CO Total 2,902 1 RBC Capital 1,256 43 2 Morgan Stanley 403 14 3 George K. Baum 271 9 MO Total 2,898 1 Morgan Stanley 956 33 2 George K. Baum 397 14 3 Piper Jaffray 327 11 IN Total 2,694 1 City Securities 791 29 2 Bank of America Merrill 779 29 3 Wells Fargo 163 6 MI Total 2,633 1 Stifel 561 21 2 Fifth Third 458 17 3 Bank of America Merrill 366 14 OR Total 2,590 1 Citigroup 784 30 2 Seattle-Northwest 397 15 3 Morgan Stanley 325 13 GA Total 2,533 1 Bk of America Merrill 636 25 2 JP Morgan 573 23 3 Robert W. Baird 272 11 LA Total 2,503 1 Raymond James 614 25 2 Bank of America Merrill 453 18 3 JP Morgan 315 13 IA Total 2,315 1 Citigroup 1,207 52 2 Robert W. Baird 192 8 3 Piper Jaffray 161 7 TN Total 2,224 1 Raymond James 415 19 2 Goldman Sachs 375 17 3 Morgan Stanley 303 14 SC Total 2,158 1 Wells Fargo 414 19 2 JP Morgan 353 16 3 RBC Capital 324 15 KY Total 2,059 1 Bk of America Merrill 788 38 2 Citigroup 386 19 3 Robert W. Baird 244 12 MN Total 2,013 1 RBC Capital 377 19 2 Piper Jaffray 291 14 3 Northland 206 10 CT Total 1,727 1 Citigroup 428 25 2 Wells Fargo 173 10 3 Bank of America Merrill 173 10 OK Total 1,674 1 Bk of America Merrill 463 28 2 RBC Capital 212 13 3 Bosc 171 10 AL Total 1,333 1 Bk of America Merrill 377 28 2 Merchant Capital 185 14 3 Raymond James 152 11 continued next page 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 6  1 2 3 4 5 6 7 8 9 10 11 12 
  • 7. State Underwriter Issuance ($Millions) % of Issuance in State State Underwriter Issuance ($Millions) % of Issuance in State State Underwriter Issuance ($Millions) % of Issuance in State KS Total 1,004 1 Piper Jaffray 269 27 2 Robert W. Baird 125 12 3 Oppenheimer 96 10 NV Total 975 1 Morgan Stanley 219 22 2 Citigroup 196 20 3 RBC Capital 165 17 NM Total 975 1 Bk of America Merrill 268 27 2 William Blair 137 14 3 Robert W. Baird 134 14 AK Total 908 1 Stephens 445 49 2 Morgan Stanley 112 12 3 Crews & Associates 111 12 UT Total 852 1 JP Morgan 312 37 2 Zions 123 14 3 Wells Fargo 106 12 NE Total 786 1 Ameritas 298 38 2 D.A. Davidson 140 18 3 JP Morgan 100 13 DE Total 734 1 JP Morgan 225 31 2 Morgan Stanley 206 28 3 Bank of America Merrill 111 15 MS Total 713 1 Morgan Stanley 226 32 2 Rice Financial 191 27 3 Duncan Williams 108 15 ME Total 685 1 Raymond James 215 31 2 Bank of America Merrill 145 21 3 Citigroup 95 14 RI Total 672 1 Raymond James 241 36 2 Bank of America Merrill 204 30 3 Janney Montgomery 98 15 AK Total 621 1 RBC Capital 254 41 2 Citigroup 162 26 3 Keybanc 87 14 VT Total 422 1 Morgan Stanley 378 90 2 RBC Capital 18 4 3 Bank of America Merrill 16 4 SD Total 406 1 Barclays 170 42 2 Dougherty 109 27 3 Bank of America Merrill 67 17 WV Total 389 1 Wells Fargo 211 54 2 Piper Jaffray 58 15 3 Crews & Associates 47 12 MT Total 386 1 JP Morgan 162 42 2 D.A. Davidson 124 32 3 RBC Capital 73 19 NH Total 311 1 George K. Baum 124 40 2 RBC Capital 45 14 3 Robert W. Baird 35 11 DC Total 195 1 RBC Capital 108 55 2 Morgan Stanley 87 45 ND Total 171 1 Robert W. Baird 74 43 2 Dougherty 47 27 3 First Southwest 33 19 WY Total 140 1 Bk of America Merrill 87 62 2 Wells Fargo 27 19 3 George K. Baum 21 15 HI Total 125 1 Bk of America Merrill 99 79 2 Morgan Stanley 26 21 ID Total 105 1 Barclays 36 34 2 George K. Baum 31 30 3 Municipal Capital 18 17 GU Total 23 1 Barclays 23 100 Source: Bloomberg Numbers run as of July 29,2013 Excludes derivatives & notes, full credit to bookrunning manager, based on dated date Underwriters what state offers the best value in the municipal market?mbm <Go> 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 7  1 2 3 4 5 6 7 8 9 10 11 12 
  • 8. Underwriters Q1-Q2 2013 Position Underwriter Issuance ($billions) % Issuance 1 Bank of America Merrill 25.70 15.3 2 JP Morgan 22.22 13.2 3 Citigroup 17.60 10.5 4 Morgan Stanley 9.83 5.8 5 RBC Capital 9.63 5.7 6 Wells Fargo 9.36 5.6 7 Barclays 9.34 5.5 8 Piper Jaffray 6.14 3.6 9 Raymond James 5.58 3.3 10 Robert W. Baird 5.20 3.1 Total 168.30 *excludes derivatives & notes, full credit to bookrunning manager, based on dated date Top 10 Underwriters Q1-Q2 2013 ($billions) Numbers run as of July 24 2013 Q1-Q2 2013 Position Underwriter Issuance ($billions) % Issuance 1 Bank of America Merrill 8.17 21.8 2 Citigroup 5.48 14.6 3 JP Morgan 5.00 13.3 4 Robert W. Baird 2.86 7.6 5 Wells Fargo 2.84 7.6 6 Raymond James 1.27 3.4 7 Piper Jaffray 1.16 3.1 8 Hutchinson Shockey 0.99 2.6 9 Morgan Stanley 0.91 2.4 10 Janney Montgomery 0.91 2.4 Total 37.54 *excludes derivatives & notes, full credit to bookrunning manager, based on dated date Top 10 Competitive Underwriters Q1-Q2 2013 ($billions) Numbers run as of July 24 2013 Q1-Q2 2013 Position Underwriter Issuance ($billions) % Issuance 1 Bank of America Merrill 17.53 13.4 2 JP Morgan 17.22 13.2 3 Citigroup 12.12 9.3 4 RBC Capital 9.11 7.0 5 Barclays 8.94 6.8 6 Morgan Stanley 8.92 6.8 7 Wells Fargo 6.52 5.0 8 Piper Jaffray 4.98 3.8 9 Stifel Nicolaus 4.85 3.7 10 Goldman 4.39 3.4 Total 130.76 *excludes derivatives & notes, full credit to bookrunning manager, based on dated date Source: Bloomberg Top 10 Negotiated Underwriters Q2 2013 ($billions) Numbers run as of July 24 2013 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 8  1 2 3 4 5 6 7 8 9 10 11 12 
  • 9. UNDERWRITERS The Average Cost of Municipal Underwriting: $5.34 a Bond The map shows the average cost of bond issuance by state, using the cost of issuance/underwriter discount disclosed in official statements, weighted by transaction size and expressed as a percentage. Translated into dollars and cents, the data show that New Jersey issuers paid the least to sell bonds, $25,800 per $10 million borrowed, or $2.58 per $1,000 bond. It cost North Dakota issuers the most to tap the market, an average of almost $200,000 to sell the same $10 million in bonds.The average underwriting cost across the entire municipal market was $5.34 per $1,000 bond. The information on underwriting costs was collected from long-term transactions sold during the second quarter of 2013. State State Code Issuance Volume ($Millions) Cost of Issuance % State State Code Issuance Volume ($Millions) Cost of Issuance % State State Code Issuance Volume ($Millions) Cost of Issuance % 2Q 2013 State-by-State Cost of Issuance Excludes Derivatives, Notes Source: Bloomberg Numbers run as of July 24, 2013 Source: Bloomberg 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 9 California CA 14,274 0.482 Texas TX 9,553 0.551 New York NY 6,832 0.533 New Jersey NJ 5,074 0.258 Illinois IL 4,489 0.418 Florida FL 3,971 0.554 Ohio OH 3,509 0.459 Pennsylvania PA 3,146 0.551 Virginia VA 2,948 0.364 Wisconsin WI 2,388 0.508 Massachusetts MA 2,170 0.347 Missouri MO 2,091 0.557 Iowa IA 2,000 1.333 Washington WA 1,877 0.499 Arizona AZ 1,873 0.729 Maryland MD 1,722 0.451 North Carolina NC 1,674 0.519 Colorado CO 1,608 0.572 Louisiana LA 1,593 0.624 Tennessee TN 1,506 0.601 Indiana IN 1,489 0.702 Michigan MI 1,487 0.499 South Carolina SC 1,380 0.428 Georgia GA 1,321 0.442 Minnesota MN 1,024 0.907 Oregon OR 980 0.470 Alabama AL 960 0.766 Kentucky KY 947 0.837 Nevada NV 898 0.365 Oklahoma OK 880 0.556 New Mexico NM 853 0.415 Connecticut CT 688 0.471 Utah UT 674 0.399 Kansas KS 596 0.981 Nebraska NE 542 0.913 Mississippi MS 535 0.814 Arkansas AR 496 0.835 Vermont VT 422 0.617 Rhode Island RI 388 0.496 Maine ME 350 0.666 Montana MT 315 0.682 Delaware DE 302 0.505 New Hampshire NH 223 0.527 Alaska AK 173 0.428 South Dakota SD 164 0.743 West Virginia WV 156 0.999 Wyoming WY 128 0.822 District of Columbia DC 87 - Idaho ID 83 1.022 North Dakota ND 78 1.989 Total US 92,917 0.534  1 2 3 4 5 6 7 8 9 10 11 12 
  • 10. Investors Ticker Name Management Company 2ND Quarter of 2013 Assets Expense ratio MGMT Fee ATOIX US Alpine Ultra Short Tax Optimized Income Fund Alpine Woods Capital Investors 0.13 1,417 0.65 0.75 WUSMX US Wells Fargo Advantage Ultra Short-Term Muni Inc Wells Fargo Funds Management LLC 0.09 6,259 0.6 0.28 ORSYX US Oppenheimer Rochester Short Term Fund Muni Fund OppenheimerFunds -0.02 407 0.63 0.5 MUISX US BMO Ultra Short Tax Free BMO Asset Management -0.06 830 0.3 0.2 FMUSX US Federated Municipal Ultrashort Fund Federated Investment Management -0.11 3,543 0.53 0.4 WSBIX US Wells Fargo Advantage Short-Term Municipal Bond Fund Wells Fargo Funds Management LLC -0.12 5,642 0.4 0.3 DFSMX US DFA Short-Term Municipal Bond Portfolio DFA Dimensional Funds -0.16 1,647 0.22 0.2 WSTMX US Wells Fargo Advantage Short-Term Municipal Bond Fund Wells Fargo Funds Management LLC -0.17 5,642 0.6 0.3 SUMAX US SEI Tax Exempt Trust Short Duration Municipal Fund SEI Investments Management Corp -0.26 965 0.64 0.33 FMLCX US Fidelity Municipal Income 2015 Fund Fidelity Management & Research/USA -0.26 80 0.65 0.3 Source: Bloomberg Ticker Name Management Company 2ND Quarter of 2013 Assets Expense ratio MGMT Fee DFCMX US DFA California Short Term Municipal Bond Portfolio DFA Dimension Funds -0.33 457 0.23 0.2 HICOX US Colorado BondShares -- A Tax-Exempt Fund Freedom Funds Management Co -0.39 908 0.58 0.5 PCDIX US PIMCO California Short Duration Municipal Income Fund Pacific Investment Management Co LLC -0.44 207 0.33 0.33 SDCMX US Bernstein Short Duration California Municipal Portfolio Alliance Bernstein LP -0.57 87 0.67 0.45 SCTIX US Wells Fargo Advantage California Limited-Term Tax-Free Fund Wells Fargo Funds Management LLC -0.64 578 0.6 0.35 SDNYX US Bernstein Short Duration New York Municipal Portfolio Alliance Bernstein LP -0.66 103 0.64 0.45 CCSTX US Capital Group California Short-Term Municipal Fund Capital Guardian Trust Co -1.02 0.05 0.4 0.35 PTFSX US Pacific Capital Tax-Free Short Intermediate Securities Fund Boston Advisors LLLC -1.17 57 0.25 0.2 FCSTX US Fidelity California Short Intermediate Tax Free Bond Fund Fidelity Management & Research Co -1.2 751 0.35 0.37 ALABX US Williamsburg Investment Trust Alabama Tax-Free Bond Fund Leavell Investment Management Inc -1.33 33 0.65 0.35 Source: Bloomberg Mutual Fund Performance — National Open End Funds Mutual Fund Performance — Single State Open End Funds Tobacco, Housing Did Best During First Half Market Rout -5% -4% -3% -2% -1% 0% IDR/PCR Water and Sewer Transportation Education Hospital Special Tax Leasing Local G.O. OVERALL INDEX State G.O. Resource Recovery Electric Housing Tobacco Sector Tobacco, Housing Lose the Least During 2Q Market Rout Total Return Source: Barclays Plc. During the worst quarterly rout since 2010, tobacco and housing debt were the only two segments to lose less than 2 percent, according to Barclays Plc. To- bacco has outperformed “because every- body has been reinvesting their big turbo payments,’’ said Lyle Fitterer, head of tax-exempt fixed income for Wells Capital Management, which oversees about $34 billion in munis. State GOs, the worst per- former in 2012, lost 2.9 percent, less than the overall index’s 3 percent decline. “In this kind of market, people would rather have high quality than lower quality,” said Hugh McGuirk, head of municipal invest- ments at T. Rowe Price Group Inc., which oversees about $20 billion of munis. — Brian Chappatta Tobacco, Housing Lose the Least During 2Q Market Rout 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 10  1 2 3 4 5 6 7 8 9 10 11 12 
  • 11. INVESTORS Fewer Deals, More Dollars, Defaulted During First Half First Half Was Quiet for Municipal Bankruptcies. Biggest of All Was to Come in 3Q Defaults Bankruptcies 0 2 4 6 8 10 12 14 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Chapter 9 Filings Source: Chapman & Cutler LLP 0 5 10 15 20 25 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Muni Defaults (Par in $ Billions) Source: Distressed Debt Securities Newsletter There were 20 issues in both monetary and technical default totaling $6.96 billion during the first half of 2013, according to Richard Lehmann of the Distressed Debt Securities Newsletter. The number of is- sues was down from the 85 deals that de- faulted during the first half of 2012, but up from the $2.7 billion in dollar amount that defaulted at the time. “Detroit is, of course, the big story here with $6.446 billion in bond debt outstanding,’’ Lehmann wrote. In all of 2012, there were 156 issues in default of $4.8 billion in debt. --Joe Mysak The first half of 2013 saw only three Chapter 9 municipal bankruptcies, two hospitals and a Nebraska sanitary district, according to James Spiotto, bankruptcy expert and partner at Chapman & Cutler LLP in Chicago. On July 1, an Arkansas improvement district filed. The biggest bankruptcy of all was filed on Thursday, July 18, by the city of Detroit. For all of 2012, there were 12 Chapter 9 filings, down from the 18-year high of 13 in 2011. --Joe Mysak is municipal bond supply meeting demand in your state? mbm <go> 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 11  1 2 3 4 5 6 7 8 9 10 11 12 
  • 12. Assured Guaranty File: 4635_Commitment MysakQ2Stat Insertion: July 22, 2013 Assured Guaranty Municipal Corp. and Assured Guaranty Corp. (and affiliates), New York, New York. AGM | AGC COMMITMENT GUARANTEED ASSURED GUARANTY CORP. ASSURED GUARANTY MUNICIPAL E M B R A C E P O S S I B I L I T I E S , I N V E S T I N C E R TA I N T I E S . At Assured Guaranty, we back our commitments with $12 billion to meet claims. And as owners of our insured Stockton, CA or Jefferson County, AL bonds can attest, Assured Guaranty policyholders have never missed an interest or principal payment, even if the issuer defaults. Stronger, safer investments from the proven leader in municipal bond insurance. More at AssuredGuaranty.com 07.31.13 www.bloombergbriefs.com Bloomberg Brief | Municipal Market 12  1 2 3 4 5 6 7 8 9 10 11 12 

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