Infrastructure Gap Barely Dented by Record 2020 Bond Sales, Expect Lower 2021 Issuance
We may see a record amount of municipal bond issuance by the end of 2020. Even on the low end, it could reach $450 billion, which was the estimate we published on Dec. 18, 2019.
A severe infrastructure gap remains in the United States. We do not think this gap is going to influence issuers to sell more debt in 2021 compared to 2020.
We expect overall municipal bond issuance will be down in 2021. Issuance is likely to fall to about $375 billion according to our analysis.
Key reasons we are forecasting a year-over-year decrease: 1) issuance was accelerated into 2020, and 2) new money issuance going to fall because of revenue uncertainty and concerns about the strength of balance sheets.