Municipal trading volume dips by more than 25.4% in third quarter: MSRB

By Jennifer Chiou

New York, Nov. 5 – The Municipal Securities Rulemaking Board announced market statistics showing a 25.4% decline in the number of municipal bond trades for the quarter ended Sept. 30, compared to the same quarter a year ago.

According to an MSRB release, the total number of municipal trades in the quarter came to 2.19 million.

The MSRB added that trading of fixed rate municipal securities decreased to $371.2 billion in the third quarter, compared to the $493.2 billion traded in same period last year, a 24.7% drop.

The board’s quarterly statistics include data on trading patterns, interest rate resets and continuing disclosure filings for the $3.7 trillion municipal bond market.

Among the highlights, the MSRB found that the par amount of municipal securities traded in the third quarter of 2014 totaled $671.8 billion, down 18.6% from the $825.4 billion traded in the same period in 2013.

Compared to the second quarter of 2014, the par amount traded decreased 9.1%, while the number of trades decreased 2.3%, the board stated.

In addition, the number of variable-rate demand obligations rate resets continued to decline in the third quarter to 155,170, down from 171,539 rate resets in the same period a year ago.

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