Barclays Municipal Strategy Monthly Performance and Outlook - April 2016-2

Municipal Credit Research
3 May 2016
Municipal Strategy Monthly
Performance and Outlook

April 2016
The Barclays Municipal Index posted a tenth consecutive month of positive total
returns in April, generating returns of +0.74% and bringing year-to-date returns to
2.42%. Munis outperformed the US Treasury Index, which returned -0.11% in April.
The Taxable Muni Index generated excess returns of +1.14% and underperformed
the US Credit Long Index by 1.55%. Spreads for taxable munis tightened 8bp, while
the long credit index tightened 18bp.
Muni monthly issuance in April totaled about $34bn, down 20% m/m and 18% y/y.
New money issuance accounted for 43% of April supply, while refundings
represented the balance.
Muni fund flows remained positive in April, with inflows averaging about $1.1bn per
week. As of April 20, 2016, ICI data show that fund inflows totaled $3.4bn during the
month. Total inflows for the year stand at $18.3bn.
Outlook and Recommendations

Helped by the Feds dovish stance, slower economic data and supportive
technicals, high grade muni yields continued to decline despite poor valuations,
while Puerto Ricos long-awaited default on its GDB bonds failed to affect the rest
of the HY muni market.
Long-dated tax-exempt hospitals look attractive to us. In particular, the single-A

rated part of the index offers compelling relative value to the AA-rated portion. The
spread between the two indices stands at 30bp, well off the multi-year low of 7bp in
late January 2015.
Chicago water bonds look attractive to us. Second liens trade with a YTW of 4.07%,
70-80bp behind comparable indices. The bonds also offer 10bp of pickup versus longdated Chicago second lien wastewater bonds, despite being slightly higher rated.
Given their recent underperformance compared to corporates, taxable munis look

attractive for crossover investors.
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES STARTING AFTER PAGE 26
Mikhail Foux
+1 212 526 7849
mikhail.foux@barclays.com
BCI, US
Sarah Xue
+1 212 526 0790
sarah.xue@barclays.com
BCI, US
Mayur Patel
+1 212 526 7609
mayur.xa.patel@barclays.com
BCI, US
www.barclays.com
Barclays | Municipal Strategy Monthly
April Market Overview

The Barclays Municipal Index posted a tenth consecutive month of positive total returns in
April, generating returns of +0.74% and bringing year-to-date returns to 2.42%. In
comparison, munis outperformed the US Treasury Index, which returned -0.11% in April.
The best-performing revenue sectors were IDR/PCR (+0.89%), Transportation (+0.87%),
and leasing (+0.87%); the sectors with the lowest total returns were resource recovery
(+0.53%), housing (+0.67%), and hospitals (+0.74%). The Guam (+1.12%), New Jersey
(+1.05%), and South Dakota (+0.90%) indices were the best-performing municipal state (or
commonwealth/territory) indices; the Puerto Rico (+0.14%), New Mexico (+0.43%), and
Montana (+0.47%) indices generated the lowest returns.
The Taxable Muni Index generated excess returns of +1.14% and underperformed the US
Credit Long Index by 1.55%. Spreads for taxable munis tightened 8bp, while the long credit
index tightened 18bp. Revenue bonds underperformed GOs by 0.36% in excess return; in
the revenue sector, the top outperformers were health care, transportation, and power,
while the biggest underperformers were industrial revenues, education, and special tax.
Away from investment grade, the HY Index generated total returns of +0.61%. This reflected
total returns of +2.1% in HY Tobacco and +1.3% in IDR/PCR (ex-tobacco). The yield
movement for the HY tobacco index diverged from that on the HY Puerto Rico index, as the
HY tobacco index rallied 19bp m/m, while the HY Puerto Rico index sold off 32bp m/m.
Muni issuance in April totaled about $34bn, down 20% m/m and 18% y/y (Figure 40), with
net issuance coming in at approximately +$14bn. Major deals in April included the $1.5bn
State of California General Obligation bonds, the $1.0bn Wisconsin Health and Educational
Facilities Authority Revenue bonds (Ascension Health Alliance), and the $813mn University
of California Revenue bonds.
Muni fund flows remained positive in April, with inflows averaging about $1.1bn per week. As
of April 20, 2016, ICI data show that fund inflows totaled $3.4bn during the month, bringing
total inflows year-to-date to $18.3bn.
Outlook
Strong Performance, Albeit Poor Valuations
It was hardly a surprise that the Fed kept rates unchanged last week; the vast majority of
investors have already discounted any real possibility of a rate hike this month, shifting their
focus to Junes meeting. Barclays economists retain their baseline outlook for two rate hikes
in 2016 (likely in June and December), though the risk is skewed to only one.
Helped by the Feds dovish stance and slower economic data, US Treasury yields continued
to decline and high grade muni yields dropped as well, though MMD/UST ratios have ticked
up higher, as frequently happens when rates fall; meanwhile, Puerto Ricos long-awaited
default on its GDB bonds failed to affect the rest of the HY muni market (Figure 1). Despite
poor valuations, munis continue to enjoy supportive technicals (see below).
The vast majority of investors want to remain defensive, but are simply forced to put some
cash to work, albeit among poor valuations. In our view, being defensive (ie, moving up in
quality and shortening duration) is the best way to position at the moment, but that also
means possibly underperforming more aggressive peers. Hence, some are choosing instead to
trade down in quality and coupon and extend; consequently, credit spreads and the
differential between 4%s and 5%s have compressed, while the yield curve has flattened. It is
not clear when this will start to change, but at the very least, we would need substantially
3 May 2016
FIGURE 1
IG Munis and HY (ex-PR) (yield to worst)
YTW (%)
FIGURE 2
Cash and Near-Cash Holdings of Main Fund Families
Municipal Index
Municipal High Yield Index ex PR
% Cash
12%
10%
8%
6%
4
3
4%
2%
1
0
Jan-12
0%
Jan-13
Jan-14
Jan-15
Jan-16
Source: Barclays Research
Source: Bloomberg
higher rates to achieve it. If the Fed actually hikes in June, which investors are not anticipating
at the moment, and/or the US economy starts growing stronger, higher rates should result.
Muni Market Technicals

Supply: Per SIFMA, gross supply was an estimated $34bn in April, resulting in net supply of
+$14bn. Year-to-date, gross issuance totalled about $133bn, with net supply of +$30bn. We
expect issuance to continue to ramp up over the next few months, particularly as we get
into June, which tends to be one of the largest supply months of the year.
Flows: Muni funds that report weekly have averaged $700mn of inflows per week with no
signs of slowing. Year-to-date, inflows have totaled $18-19bn, depending on the data source.
Cash Holdings: Municipal mutual funds have accumulated substantial cash and near-cash
holdings that are ready to be deployed when opportunity presents itself. In Figure 2, we show
cash holdings for some of the largest fund families.
High Yield Munis

Long high yield munis rallied 13p during the month, supported by a 19bp rally in HY
tobacco; despite this, long HY munis underperformed long HY credit, which rallied 54bp.
The HY Puerto Rico index sold off 32bp.
Relative Value and Recommendations

Long Hospitals: The investment grade hospital revenue sector generated positive total returns
of 4.1% in 2015, outperforming all other revenue sectors for the year. The strong performance
has carried over into this year, with hospitals up 2.5% year-to-date. After a 15-month rally, we
view the sector as rich for the most part. However, we think there are still pockets of value. In
particular, long-end single-A hospitals look attractive to us.
The long AA-rated hospitals sector looks rich compared with long A-rated hospitals, and the
yield differential between the two is at wides last reached more than 15 months ago. The
spread between the two indices stands at 30bp, well off the multi-year low of 7bp in late
January 2015 (Figure 3).
Compared with the revenue index, long single-A hospitals, which were trading as much as
18bp through the index, have cheapened recently and are now closer to fair value. On the
other hand, long AA-rated hospitals have richened, with the differential relative to the revenue
index tightening since mid-February (Figure 4).
3 May 2016
FIGURE 3
A-AA Hospital +22y Spreads
FIGURE 4
Long Hospital versus Long Revenue Index YTW by Quality
Diff (bp)
Diff (rhs)
Municipal Index Hospital AA +22y
40
Municipal Index Hospital A +22y
35
YTW (%)
3.6
3.4
3.2
3.0
25
15
2.6
10
2.4
2.2
Jan-15
0
Apr-15
Jul-15
Oct-15
Source: Barclays Risk Analytics and Index Solutions
Jan-16
Apr-16
Long Hospital (AA) - Long Revenue (AA)

Long Hospital (A) - Long Revenue (A)
Long Hospital (BBB) - Long Revenue (BBB)
10
30
20
2.8
YTW Difff
(bp)
15
-5
-10
-15
-20
-25
-30
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Callable Munis: As discussed in Call me maybe, April 13, 2016, we explored using the Muni
OAS and OAD metrics to evaluate callable munis. These are available in Barclays POINT. When
looking at callable bonds issued by a single issuer, the OAS methodology allows us to screen
for bonds on the curve that appear mispriced. We showed that because of a slightly longer call
protection period, the duration of the 15y index is longer than that of the 20y index; hence, it
tends to outperform in rallies and underperform in sell-offs. Last, we discussed kicker bonds
and highlighted some CUSIPs that we find attractive from a relative value standpoint. Please
click here for more detail.
CIFG Insured Bonds: As discussed in How low can yields go?, April 22, 2016, in mid-April,
Assured Guaranty announced that it entered into an agreement to acquire CIFG Assurance
North America (CIFG NA or CIFG), a run-off financial guarantor, for $450mn in cash.
Given the transaction, the value of Assureds wraps has marginally improved, in our view.
While AAA and AA credits are unlikely to react, lower-rated credits, including those of Puerto
Rico, should benefit. Moreover, since there is still some deal premium baked into bonds
wrapped by CIFG, in our view, investors should add exposure to low-rated credits wrapped by
CIFG where possible.
Chicago Water: On April 26, S&P upgraded Chicago water bonds, with the senior lien
ratings revised to A+ from A and the second lien ratings revised to A from A-; the outlook is
stable. The rating agencys decision was driven by removal of counterparty and liquidity
risks in conjunction with the issue of the 2016A bonds and remarketing of the city's series
2000 and 2004 second-lien water revenue bonds.
In terms of relative value, long-dated Chicago water bonds look attractive to us (Figure 5).
Second liens trade with a YTW of 4.07%, 70-80bp behind comparable indices. The bonds also
offer 10bp of pickup versus long-dated Chicago second lien wastewater bonds, despite being
slightly higher rated. We believe this relationship could reverse over time; previously, these
Chicago water bonds traded as much as 20-25bp through Chicago wastewater bonds.
Taxables: We find good value in taxable munis compared to corporates. As Figure 6 shows,
over the past 1-1.5 months, IG credits have outperformed similar-rated taxable munis, more
so for single-A and BBB names. Performance of the triple-B muni bucket is skewed by
Illinois, and there are only five CUSIPs in this sub-index. We can make an argument that
despite their problems, Illinois GOs are quite attractive compared with similar-rated
corporates, but it remains a difficult credit story to analyze, and we are hard-pressed to see
a trigger that should buoy Illinois bonds near term.
3 May 2016
FIGURE 5
Long-Dated Chicago Water Bonds versus Comps
FIGURE 6
Taxable Munis vs. Long Corporates (by rating)
Chicago Wastewater 5% 2044

Chicago Water 5% 2042
Chicago Park Dist 5% 2037
Municipal Index Baa (22+)
Municipal Index Illinois (22+)
YTW (%)
6.0
5.5
BAB minus Long Credit - AAA

BAB minus Long Credit - AA
BAB minus Long Credit - single-A
BAB minus Long Credit - Baa
OAS (bp)
100
50
5.0
4.5
4.0
3.5
3.0
Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16
-50
Apr-15
Aug-15 Oct-15
Jun-15
Dec-15
Feb-16
Apr-16
Source: Barclays Research
Meanwhile, there are a number of solid single-A muni credits that have enough value to attract
investor interest, in our view. While long-dated single-A corporates rallied 52bp from their midFebruary highs, muni credits MTA, OHare Airport and Penn State Turnpike and some others are all
trading above their 12-month averages, while severely underperforming corporates this year
(Figure 7).
Century Bonds: We have frequently discussed the taxable muni century bond sub-sector:
most of the credits in this sector are rated AA and higher; about a year ago, there was a lot
of primary activity in this space, and it was quite liquid. However, starting last June, the
primary supply and secondary activity have died down due to investor pushback. While the
activity in this sector has been quite scarce lately, some large credits in this sector (ie, Ohio
University, Ohio State University, University of California) are trading 30-70bp cheap to
long-dated corporates, which are also rated several notches lower than munis. In our view,
investors should yet again take a close look at this sector, while issuers might once again
find more appetite for century bonds from market participants (Figure 8).
FIGURE 7
Single-A Munis vs. Corporates
OAS
210
FIGURE 8
100y Munis vs. Long-Dated Corporates
US Credit Corp (Single-A, 30y)

MTA 5.871% 2039
Penn St Turnpike 2039
Chicago O'Hare 2040
OAS
190
US Credit Corp (Single-A, 30y)

Ohio University 5.59% 2114
Ohio State University 4.8% 2111
University of California 4.858% 2112
230
170
180
150
130
Jan-15
Apr-15
Jul-15
Oct-15
3 May 2016
Jan-16
Apr-16
130
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Tax-exempt Indices
3 May 2016
ASSET CLASS RETURNS AND RATIOS

FIGURE 9
Asset Class Total Returns as of April 29, 2016
1 year
Annualized Returns
DJIA
2.6%
2.7%
2.8%
2.9%
U.S. Treasury*
U.S. Agency
2.6%
Corporate
2.3%
Aggregate
2.0%
Eurodollar
1.9%
MBS
1.2%
ABS
5%
S&P 500
10%
5.3%
6.7%
9.1%
9.9%
-10%
-5.9%
-2.2%
-1.1%
U.S. High Yield
-5%
NASDAQ
0%
Muni HY**
Muni**
Global Tsy
Taxable Munis
Russell 2000
-15%
3 year
Annualized Returns
20%
14.2%
15%
10%
2.5%
2.5%
Eurodollar
U.S. High Yield
2.6%
2.7%
Corporate
2.3%
MBS
1.9%
Aggregate
0.7%
1.5%
U.S. Treasury*
0%
1.3%
U.S. Agency
5%
ABS
7.3%
7.5%
8.5%
8.8%
11.3%
4.5%
Taxable Munis
DJIA
NASDAQ
Muni HY**
9.5%
S&P 500
Russell 2000
9.1%
DJIA
Muni**
8.9%
Muni**
Annualized Returns
Taxable Munis
Global Tsy
-5%
5 year
25%
20%
15%
3.6%
4.2%
4.9%
5.4%
Aggregate
Eurodollar
Corporate
U.S. High Yield
2.3%
3.4%
U.S. Treasury*
2.2%
MBS
0.8%
ABS
5%
3.1%
U.S. Agency
10%
7.0%
12.6%
11.0% 12.0%
0%
Muni HY**
NASDAQ
S&P 500
Russell 2000
Global Tsy
-5%
Note: Taxable equivalent returns: * US Treasury income is exempt from state income taxes and is adjusted using a national state average (top bracket), net of federal
income tax. ** Based on an equally weighted national average federal and state (top bracket) income tax rate; local taxes have not been considered.
Source: Bloomberg, Barclays Risk Analytics and Index Solutions
3 May 2016

FIGURE 10
Taxable Equivalent Returns for Past 10 Years, Ending April 29, 2016
Annualized Return
10%
NASDAQ
STD = 17.9
Tax-adjusted Muni HY**

Tax-adjusted Muni**
8%
Taxable Muni
6%
Eurodollar
MBS
4%
Agency
S&P 500
STD = 15.3
US Credit
Muni
Treasury*
Aggregate
US HY
DJIA
STD = 14.3
Muni HY
Russell
2000
STD = 19.9
Global Treasury
ABS
2%
2
10
11
12
13
Annualized Standard Deviation (%)

Note:* US Treasury income is exempt from state income taxes and is adjusted using a national state average (top bracket), net of federal income tax. ** Based on an
equally weighted national average federal and state (top bracket) income tax rate; local taxes have not been considered.
FIGURE 11
Taxable Equivalent Muni Returns for Past 10 Years, Ending April 29, 2016
Annualized Return
10%
10y
9%
15y
20y
Long
7y
8%
5y
Muni**
US HY
7%
3y
6%
1y
US Credit
5%
Treasury*
4%
0
10
12
Annualized Standard Deviation (%)

Note:* US Treasury income is exempt from state income taxes and is adjusted using a national state average (top bracket), net of federal income tax. ** Based on an
equally weighted national average federal and state (top bracket) income tax rate; local taxes have not been considered.
3 May 2016
MUNICIPAL HIGH YIELD SPREADS AND PERFORMANCE

FIGURE 12
BAA Municipal Index Yields minus AAA Municipal Index Yields
Spread (bp)
450
Avg: 134 bp
Min: 30 bp
Max: 413 bp
Std Dev: 91 bp
400
350
300
250
200
150
100
50
04/29/16 Spread = 133bp
0
Jan-93
Jan-95
Jan-97
Jan-99
Jan-01
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Jan-15
FIGURE 13
High Yield Municipal Index Yields Minus Investment Grade Municipal Index Yields
Spread (bp)
700
04/29/16 Spread = 466bp
Avg: 299 bp
Min: 113 bp
Max: 636 bp
Std Dev: 113 bp
600
500
400
300
200
100
0
Oct-95
Oct-97
Oct-99
Oct-01
Oct-03
Oct-05
Oct-07
Oct-09
Oct-11
Oct-13
Oct-15
FIGURE 14
Ratio of Municipal High Yield Index to Corporate High Yield Index Yield to Worst
140%
130%
120%
110%
Avg: 77.7%
Min: 44.3%
Max:135.9%
Std Dev: 18.2%
100%
90%
80%
70%
60%
50%
40%
Dec-95
04/29/2016 = 88.1%
Dec-97
Dec-99
Dec-01
Dec-03
Dec-05
Dec-07
Dec-09
Dec-11
Dec-13
Dec-15
Source for all figures on this page: Barclays Risk Analytics and Index Solutions
3 May 2016
FIGURE 15
Municipal Index (High Grade) Returns by Sector
April 2016
Year-to-Date 2016
Full-Year 2015
Full-Year 2014
Full-Year 2013
IDR/PCR (ex-tobacco)
1.0
3.1
Hospital
3.9
Hospital
12.4
Housing
-0.3
Transportation
0.8
Transportation
2.7
Tobacco
3.8
11.9
Resource Recovery
-0.8
-1.3
Leasing
0.8
Housing
2.6
Transportation
3.7
Transportation
10.5
Tobacco
Special Tax
0.8
Leasing
2.6
3.7
Water & Sewer
9.5
Leasing
-2.3
Electric
0.7
Special Tax
2.5
Water & Sewer
3.5
Education
9.1
Hospital
-2.4
Water & Sewer
0.7
Tobacco
2.5
Resource Recovery
3.4
Housing
8.9
Education
-2.4
Education
0.7
Electric
2.5
Education
3.3
Tobacco
8.9
Transportation
-2.5
Hospital
0.7
Water & Sewer
2.5
Special Tax
3.3
Leasing
8.8
Water & Sewer
-2.8
Housing
0.7
Education
2.4
Electric
3.3
Special Tax
8.3
-2.9
Tobacco
0.6
Hospital
2.4
Housing
3.3
Electric
8.2
Electric
-3.0
Resource Recovery
0.5
Resource Recovery
1.9
Leasing
2.7
Resource Recovery
8.1
Special Tax
-4.1
Note: Returns include pre-refunded bonds. Source: Barclays Risk Analytics and Index Solutions
FIGURE 16
Muni High Yield Returns by Sector
April 2016
Year-to-Date 2016
Full-Year 2015
Full-Year 2014
Full-Year 2013
HY Tobacco
2.1
HY Tobacco
9.4
Electric
33.2
Water & Sewer
20.0
Resource Recovery
3.0
1.3
Transportation
6.5
HY Tobacco
15.8
HY Tobacco
19.2
Special Tax
1.0
Transportation
1.0
4.0
Hospital
6.2
18.0
Electric
0.6
Resource Recovery
0.8
Education
3.6
Water & Sewer
5.6
Hospital
16.0
Housing
-0.6
Hospital
0.7
Special Tax
3.4
Housing
4.7
Special Tax
14.7
-1.7
Education
0.6
Resource Recovery
3.3
Education
3.9
Education
14.3
Hospital
-1.9
Housing
0.4
Hospital
3.0
2.6
Housing
14.2
Transportation
-2.3
-6.1
Leasing
-0.1
Water & Sewer
2.2
Resource Recovery
-1.2
Transportation
13.3
Education
Special Tax
-0.2
Housing
2.1
Leasing
-10.3
Resource Recovery
11.7
Leasing
-9.5
Water & Sewer
-0.4
Leasing
-1.1
Special Tax
-13.9
Leasing
1.6
HY Tobacco
-11.6
Electric
-2.7
Electric
-3.7
Transportation
-16.4
Electric
-14.1
Water & Sewer
-17.5
FIGURE 17
Puerto Rico Total Returns by Select Issuers (Muni Index and Muni High Yield Index Combined)
Description
April 2016
Year-to-Date 2016
Full-Year 2015
Full-Year 2014
Full-Year 2013
Full-Year 2012
-1.0
0.2
-7.9
9.6
-20.8
2.8
Commonwealth
-1.4
-4.2
-3.4
13.6
-19.9
1.5
GDB
3.2
-3.0
-59.7
7.2
-15.4
3.9
Total Puerto Rico

Select Issuers
COFINA
-2.0
3.5
-28.2
11.3
-25.5
6.0
PRASA
-1.0
1.4
2.5
17.3
-24.5
0.0
PRHTA
0.7
6.2
-12.0
11.9
-13.7
1.1
PREPA
-1.8
-1.5
23.0
-2.7
-20.9
0.0
PRPBA
-0.7
-3.5
-7.0
9.7
-23.1
1.4
PRPFC
0.5
1.8
-47.8
-9.5
-21.8
4.7
PRIFA
2.0
16.6
-50.4
17.9
0.0
0.0
3 May 2016
10
MUNICIPAL INDICES TOTAL RETURNS AND STATISTICS

FIGURE 18
Returns, as of April 29, 2016
Number
Issues
Municipal Bond Index
Price
Return
Coupon
Return
MTD Total
Return
Past
3m
Past
6m
Year
to Date
Past
12m
Since
Inception
1,031.17
48,514
0.39
0.35
0.74
1.21
3.55
2.42
5.29
1 Year (1-2)
3,961
-0.26
0.37
0.11
0.13
0.29
0.43
0.82
95.06
3 Year (2-4)
6,874
-0.11
0.36
0.25
0.38
0.75
1.02
1.84
200.16
5 Year (4-6)
5,266
0.15
0.34
0.49
0.49
1.74
1.64
3.44
336.16
7 Year (6-8)
4,967
0.33
0.34
0.67
0.74
2.90
2.18
4.61
334.05
10 Year (8-12)
9,164
0.47
0.33
0.80
1.20
3.94
2.72
5.89
1,021.12
15 Year (12-17)
9,131
0.55
0.34
0.88
1.49
4.83
3.04
7.02
444.26
20 Year (17-22)
4,938
0.61
0.35
0.96
1.63
4.69
2.93
6.63
1,341.64
Long Bond (22+)
4,213
0.69
0.35
1.05
2.12
5.36
3.31
7.30
1,385.52
14,912
0.38
0.34
0.71
1.03
3.29
2.24
5.02
890.03
State GO
6,336
0.32
0.35
0.67
0.89
3.01
2.07
4.70
864.19
Local GO
8,576
0.44
0.32
0.76
1.20
3.63
2.44
5.40
361.92
1 Year GO (1-2)
1,007
-0.24
0.37
0.13
0.12
0.31
0.46
0.85
95.51
3 Year GO (2-4)
1,966
-0.08
0.35
0.27
0.36
0.77
1.06
1.88
318.85
5 Year GO (4-6)
1,895
0.15
0.34
0.49
0.39
1.67
1.60
3.37
690.27
7 Year GO (6-8)
1,779
0.35
0.33
0.68
0.66
2.84
2.11
4.48
603.34
10 Year GO (8-12)
3,172
0.46
0.33
0.78
1.11
3.73
2.55
5.63
976.59
15 Year GO (12-17)
2,974
0.53
0.33
0.86
1.38
4.70
2.84
6.82
1,182.38
GO Bond Index
Long Term GO (17+)
2,119
0.70
0.34
1.04
1.80
4.97
2.95
6.95
1,486.90
29,952
0.46
0.35
0.80
1.39
3.96
2.66
5.80
1,187.38
Electric
2,597
0.45
0.34
0.79
1.36
3.74
2.64
5.59
1,059.96
Hospital
3,421
0.37
0.37
0.74
1.52
3.91
2.52
5.80
1,646.56
Housing
870
0.38
0.32
0.67
1.59
3.65
2.64
5.09
1,076.45
IDR/PCR
518
0.53
0.36
0.89
1.74
4.13
3.00
5.80
1,114.46
Transportation
6,618
0.53
0.35
0.87
1.39
4.19
2.76
6.09
517.07
Education
3,931
0.41
0.34
0.76
1.32
3.85
2.59
5.75
386.80
Water & Sewer
4,596
0.42
0.35
0.77
1.30
3.84
2.63
5.84
402.57
99
0.17
0.36
0.53
0.93
2.80
2.02
4.56
337.67
Leasing
3,065
0.52
0.35
0.87
1.40
4.22
2.69
5.61
144.34
Special Tax
4,237
0.44
0.35
0.78
1.27
3.79
2.62
5.67
131.00
3,480
-0.19
0.38
0.18
0.26
0.67
0.82
1.62
285.28
1 Year Preref (1-2)
1,448
-0.32
0.39
0.06
0.08
0.16
0.31
0.58
87.18
3 Year Preref (2-4)
1,716
-0.19
0.39
0.20
0.31
0.50
0.85
1.50
188.98
5 Year Preref (4-6)
197
0.07
0.34
0.41
0.32
1.35
1.51
3.06
321.13
7 Year Preref (6-8)
56
0.40
0.24
0.64
0.65
2.96
2.36
4.90
347.79
8+ Yr. Preref
63
0.37
0.24
0.61
0.95
5.01
3.12
7.70
297.94
170
0.06
0.37
0.44
0.90
2.22
1.77
3.89
380.73
Long Insured
16
0.46
0.37
0.83
1.58
3.89
2.45
5.42
488.28
California Exempt
6,724
0.41
0.34
0.75
1.26
3.54
2.37
5.39
242.93
New York Exempt
6,116
0.45
0.35
0.80
1.20
3.49
2.47
5.46
232.66
AMT Index
1,934
0.39
0.37
0.76
1.25
3.75
2.36
5.47
207.39
Zero Coupon Index
1,015
1.75
0.00
1.75
3.27
9.16
5.46
11.44
250.08
Conventional Muni
45,565
0.35
0.36
0.71
1.16
3.40
2.34
5.13
1,024.81
Non-Investment Grade
3,318
0.11
0.50
0.61
2.79
3.94
3.37
4.51
216.98
Managed Money Index
20,195
0.56
0.33
0.89
1.34
4.28
2.83
6.42
242.61
Short Term (1-5)
3,972
-0.04
0.35
0.30
0.30
0.79
1.07
2.02
129.71
Sht/Interm (1-10)
9,627
0.28
0.34
0.62
0.65
2.38
1.97
4.13
184.89
Intermediate (1-17)
16,249
0.42
0.33
0.75
1.00
3.52
2.50
5.58
221.33
Long (10+)
10,568
0.77
0.33
1.09
1.86
5.76
3.48
8.22
291.83
Revenue Bond Index
Resource Recovery
Prerefunded Index
Insured Bond Index
3 May 2016
11

FIGURE 19
Statistics, as of April 29, 2016
Durat
Number
To
Issues Worst
48,863
4.83
MDur.
To
Worst
Mod.
Adj.
Durat.
Quality
4.78
6.07
AA2/AA3
Time
To
Coupon Worst
Matur.
Price
Yield
To
Worst
4.79
5.59
13.00
110.73
1.84
Market
Value
Index
Muni
1,419,174
100.00
100.00
1 Year (1-2)
3,962
1.32
1.31
1.31
AA2/AA3
4.75
1.37
1.40
105.33
0.77
93,428
6.58
6.58
3 Year (2-4)
5 Year (4-6)
6,996
2.52
2.50
2.50
AA2/AA3
4.89
2.69
2.84
110.15
0.97
167,966
11.84
11.84
5,271
3.89
3.86
3.87
AA2/AA3
4.81
4.31
4.90
114.21
1.26
125,442
8.84
8.84
7 Year (6-8)
4,962
4.83
4.79
4.80
AA2/AA3
4.84
5.48
6.90
116.49
1.48
117,754
8.30
8.30
10 Year (8-12)
15 Year (12-17)
9,186
5.56
5.51
5.72
AA2/AA3
4.76
6.48
9.90
115.70
1.76
219,517
15.47
15.47
9,231
5.78
5.72
6.91
AA2/AA3
4.71
6.76
14.37
112.19
2.12
239,180
16.85
16.85
20 Year (17-22)
Long Bond (22+)
5,005
5.46
5.39
7.60
AA3/A1
4.75
6.49
19.37
108.18
2.31
180,368
12.71
12.71
GO Bond Index
State GO
4,250
6.04
5.95
9.93
AA3/A1
4.82
7.12
26.52
106.02
2.64
275,519
19.41
19.41
14,941
4.95
4.90
5.93
AA1/AA2
4.66
5.67
11.11
111.26
1.69
384,946
100.00
27.12
6,379
4.60
4.56
5.41
AA1/AA2
4.80
5.25
10.55
114.08
1.56
209,305
54.37
14.75
Local GO
1 Year GO (1-2)
8,562
5.36
5.30
6.56
AA1/AA2
4.50
6.16
11.78
108.08
1.84
175,641
45.63
12.38
997
1.32
1.31
1.31
AA1/AA2
4.70
1.36
1.40
105.29
0.75
20,858
5.42
1.47
3 Year GO (2-4)
5 Year GO (4-6)
1,956
2.55
2.54
2.53
AA1/AA2
4.76
2.71
2.90
110.01
0.95
43,179
11.22
3.04
1,897
3.91
3.89
3.89
AA1/AA2
4.83
4.32
4.91
114.75
1.21
45,289
11.77
3.19
7 Year GO (6-8)
10 Year GO (8-12)
1,773
4.96
4.92
4.95
AA1/AA2
4.77
5.63
6.90
117.19
1.40
43,664
11.34
3.08
3,163
5.55
5.50
5.74
AA1/AA2
4.69
6.42
9.84
116.14
1.69
78,120
20.29
5.50
15 Year GO (12-17)
3,006
5.92
5.86
7.34
AA1/AA2
4.56
6.89
14.36
111.93
2.07
75,027
19.49
5.29
Long Term GO (17+)

Revenue Bond Index
2,149
6.28
6.20
9.59
AA2/AA3
4.50
7.31
22.25
103.84
2.42
78,809
20.47
5.55
30,097
5.04
4.98
6.51
AA3/A1
4.81
5.88
14.87
110.68
2.00
930,747
100.00
65.58
Electric
Hospital
2,570
4.94
4.89
6.26
AA3/A1
4.79
5.84
13.32
113.12
1.86
80,943
8.70
5.70
3,510
4.52
4.46
6.79
A1/A2
4.99
5.24
18.83
110.57
2.23
120,851
12.98
8.52
Housing
IDR/PCR
882
5.13
5.05
9.79
AA1/AA2
4.06
6.21
18.23
104.67
2.88
17,562
1.89
1.24
506
5.14
5.07
5.71
A3/BAA1
5.02
6.55
14.09
109.83
2.35
41,125
4.42
2.90
Transportation
Education
6,581
5.09
5.03
6.42
A1/A2
4.78
5.85
14.81
110.88
1.97
219,693
23.60
15.48
4,010
5.26
5.20
6.80
AA2/AA3
4.78
6.26
15.00
113.58
1.95
100,596
10.81
7.09
Water & Sewer

Resource Recovery
4,667
5.09
5.04
6.67
AA1/AA2
4.84
5.92
15.49
114.14
1.84
121,339
13.04
8.55
99
4.09
4.05
4.71
AA3/A1
4.96
4.66
13.38
113.55
1.67
2,590
0.28
0.18
Leasing
3,032
4.97
4.91
5.97
AA3/A1
4.73
5.70
12.98
106.44
2.07
90,149
9.69
6.35
4,240
5.31
5.25
6.41
AA2/AA3
4.81
6.11
12.79
107.95
1.84
135,898
14.60
9.58
3,640
2.46
2.45
2.51
AA1/AA2
5.04
2.69
2.76
109.26
0.88
99,825
100.00
7.03
1 Year Preref (1-2)

3 Year Preref (2-4)
1,460
1.35
1.35
1.35
AA2/AA3
4.98
1.41
1.41
105.84
0.73
38,129
38.20
2.69
1,834
2.47
2.46
2.47
AA2/AA3
5.28
2.65
2.66
111.42
0.84
49,541
49.63
3.49
5 Year Preref (4-6)

7 Year Preref (6-8)
219
4.36
4.34
4.36
AA1/AA2
4.87
4.90
4.90
116.89
1.09
6,037
6.05
0.43
64
5.89
5.85
6.01
AA1/AA2
3.75
6.63
6.82
111.65
1.38
1,746
1.75
0.12
63
7.98
7.91
9.09
AA1/AA2
3.49
9.59
11.06
105.39
2.21
4,372
4.38
0.31
185
3.93
3.89
4.74
AA1/AA2
4.95
4.57
13.53
109.89
1.67
3,656
100.00
0.26
18
6.23
6.14
9.84
AA2/AA3
4.77
7.60
24.96
109.56
2.64
458
12.51
0.03
Special Tax
Pre-refunded Index
8+ Yr. Preref
Insured Bond Index
Long Insured
California Exempt
6,802
4.92
4.87
5.96
AA2/AA3
4.74
5.69
13.63
110.53
1.66
247,437
100.00
17.44
New York Exempt

AMT Index
6,102
4.67
4.62
5.72
AA2/AA3
4.88
5.41
13.59
113.85
1.67
217,471
100.00
15.32
1,931
4.38
4.32
6.29
A1/A2
4.99
5.17
15.05
110.13
2.38
52,566
100.00
3.70
Zero Coupon Index
1,016
11.90
11.69
12.05
AA3/A1
0.00
11.88
14.67
58.44
3.00
35,509
100.00
2.50
Conventional Muni
45,916
4.66
4.61
5.90
AA2/AA3
4.91
5.44
12.87
113.50
1.78
1,331,099
100.00
93.79
Non-Investment Grade
3,353
7.12
6.88
9.20
B2/B3
5.38
11.24
20.34
54.00
6.49
95,606
100.00
100.00
Managed Money
20,675
5.83
5.78
7.34
AA1/AA2
4.70
6.77
12.93
115.76
1.82
549,093
100.00
38.69
Short Term (1-5)
4,030
2.78
2.76
2.76
AA1/AA2
4.69
2.98
3.03
110.97
0.88
91,495
16.66
6.45
Sht/Interm (1-10)
9,796
4.59
4.56
4.57
AA1/AA2
4.79
5.18
5.67
117.04
1.20
234,048
42.62
16.49
Intermediate (1-17)
Long (10+)
16,603
5.41
5.36
5.86
AA1/AA2
4.74
6.22
8.75
117.48
1.52
394,206
71.79
27.78
10,879
6.76
6.68
9.39
AA1/AA2
4.63
7.95
18.33
114.83
2.28
315,045
57.38
22.20
3 May 2016
12

FIGURE 20
Number
Issues
Price
Return
Coupon
Return
MTD Total
Return
Past
3m
Past
6m
Year
to Date
Past
12m
Since
Inception
48,514
0.39
0.35
0.74
1.21
3.55
2.42
5.29
1,031.17
GO Bond Index
14,912
0.38
0.34
0.71
1.03
3.29
2.24
5.02
890.03
6,336
0.32
0.35
0.67
0.89
3.01
2.07
4.70
864.19
1 Year (1-2)
513
-0.24
0.37
0.13
0.12
0.31
0.47
0.87
94.99
3 Year (2-4)
966
-0.08
0.36
0.28
0.34
0.79
1.08
1.88
315.75
5 Year (4-6)
891
0.15
0.35
0.50
0.36
1.70
1.62
3.41
684.92
7 Year (6-8)
813
0.38
0.34
0.72
0.64
2.90
2.15
4.57
601.35
10 Year (8-12)
1,358
0.47
0.33
0.80
1.08
3.66
2.53
5.60
966.39
15 Year (12-17)
1,170
0.53
0.34
0.87
1.28
4.47
2.67
6.57
1,173.57
20 Year (17-22)
465
0.48
0.36
0.84
1.30
4.02
2.35
5.80
1,039.86
Long (22+)
160
0.49
0.36
0.85
1.51
4.49
2.49
6.50
1,505.50
State GO
Revenue Bond Index
29,952
0.46
0.35
0.80
1.39
3.96
2.66
5.80
1,187.38
1 Year (1-2)
1,501
-0.20
0.36
0.15
0.19
0.42
0.54
1.04
105.06
3 Year (2-4)
3,177
-0.07
0.35
0.27
0.44
0.91
1.10
2.03
212.35
5 Year (4-6)
3,156
0.16
0.34
0.50
0.55
1.81
1.68
3.50
349.60
7 Year (6-8)
3,112
0.32
0.35
0.67
0.79
2.95
2.22
4.69
342.04
10 Year (8-12)
5,908
0.49
0.34
0.83
1.26
4.06
2.82
6.03
1,148.15
15 Year (12-17)
6,103
0.55
0.34
0.90
1.54
4.88
3.12
7.10
444.06
20 Year (17-22)
3,574
0.62
0.35
0.97
1.69
4.81
3.04
6.74
1,346.38
Long (22+)
3,421
0.67
0.36
1.03
2.12
5.32
3.31
7.26
1,376.71
380.73
Insured Bond Index
170
0.06
0.37
0.44
0.90
2.22
1.77
3.89
1 Year (1-2)
-0.27
0.39
0.12
0.00
0.17
0.37
0.74
98.19
3 Year (2-4)
15
-0.16
0.37
0.21
0.43
0.76
1.00
1.74
204.64
5 Year (4-6)
18
-0.16
0.38
0.21
0.47
1.09
1.25
2.32
267.95
7 Year (6-8)
20
-0.22
0.38
0.16
0.49
1.28
1.30
2.61
314.92
10 Year (8-12)
39
0.05
0.37
0.43
0.84
1.99
1.76
3.61
368.23
15 Year (12-17)
40
0.19
0.37
0.57
1.12
3.16
2.19
5.49
435.68
20 Year (17-22)
17
0.04
0.38
0.42
0.92
2.07
1.75
3.77
432.56
488.28
Long (22+)
AMT Index
Discount Bond Index
Long (22+)
Current Coup. Index
Long (22+)
Premium Bond Index
Long (22+)
Zero Coupon Index
16
0.46
0.37
0.83
1.58
3.89
2.45
5.42
1,934
0.39
0.37
0.76
1.25
3.75
2.36
5.47
207.39
957
1.78
0.01
1.80
3.41
10.05
5.83
12.93
2,081.43
174
2.37
0.02
2.39
5.41
13.55
7.67
17.20
2,800.28
4,664
0.15
0.33
0.48
1.16
3.24
1.90
4.86
906.06
615
0.43
0.35
0.77
1.89
4.96
2.85
6.71
885.06
42,893
0.38
0.36
0.74
1.16
3.41
2.40
5.14
687.55
3,424
0.67
0.36
1.04
2.05
5.13
3.24
7.03
1,001.29
1,015
1.75
0.00
1.75
3.27
9.16
5.46
11.44
250.08
3 May 2016
13

FIGURE 21
MDur. Mod.
Number
Durat.
To
Adj.
Issues To Worst Worst Durat.
Quality
Coupon
Time
To
Worst
Matur.
Price
Yield
To Worst
Market
Value
Index
Muni
1,419,174 100.00
100.00
48,863
4.83
4.78
6.07
AA2/AA3
4.79
5.59
13.00
110.73
1.84
GO Bond Index
14,941
4.95
4.90
5.93
AA1/AA2
4.66
5.67
11.11
111.26
1.69
384,946
100.00
27.12
State GO
6,379
4.60
4.56
5.41
AA1/AA2
4.80
5.25
10.55
114.08
1.56
209,305
100.00
14.75
508
1.32
1.31
1.31
AA1/AA2
4.82
1.36
1.41
105.49
0.75
12,473
5.96
0.88
1 Year (1-2)
3 Year (2-4)
963
2.55
2.54
2.53
AA1/AA2
4.84
2.71
2.88
110.29
0.93
25,592
12.23
1.80
5 Year (4-6)
904
3.93
3.91
3.91
AA1/AA2
4.88
4.34
4.89
115.27
1.19
26,336
12.58
1.86
7 Year (6-8)
820
5.03
5.00
5.02
AA1/AA2
4.82
5.72
6.88
118.25
1.37
24,756
11.83
1.74
10 Year (8-12)
1,365
5.47
5.42
5.66
AA1/AA2
4.75
6.33
9.81
117.27
1.63
42,482
20.30
2.99
15 Year (12-17)
1,182
5.53
5.47
6.89
AA2/AA3
4.71
6.44
14.42
114.31
1.92
40,408
19.31
2.85
20 Year (17-22)
476
5.09
5.03
7.41
AA2/AA3
4.81
5.91
19.50
111.67
2.10
22,085
10.55
1.56
Long (22+)
161
5.58
5.52
9.30
AA2/AA3
4.90
6.46
25.63
114.02
2.29
15,173
7.25
1.07
65.58
Revenue Bond Index
30,097
5.04
4.98
6.51
AA3/A1
4.81
5.88
14.87
110.68
2.00
930,747
100.00
1 Year (1-2)
1,500
1.28
1.27
1.26
AA2/AA3
4.53
1.33
1.40
104.80
0.83
34,374
3.69
2.42
3 Year (2-4)
3,191
2.53
2.51
2.51
AA2/AA3
4.70
2.71
2.92
109.42
1.07
75,058
8.06
5.29
5 Year (4-6)
3,137
3.84
3.81
3.82
AA2/AA3
4.80
4.25
4.90
113.67
1.31
73,879
7.94
5.21
7 Year (6-8)
3,105
4.74
4.70
4.69
AA3/A1
4.91
5.38
6.90
116.23
1.53
71,972
7.73
5.07
10 Year (8-12)
5,939
5.53
5.48
5.64
AA3/A1
4.83
6.46
9.92
115.73
1.79
137,291
14.75
9.67
11.45
15 Year (12-17)
6,168
5.70
5.64
6.71
AA3/A1
4.79
6.69
14.38
112.39
2.14
162,505
17.46
20 Year (17-22)
3,606
5.42
5.35
7.45
AA3/A1
4.80
6.47
19.39
108.19
2.33
137,074
14.73
9.66
Long (22+)
3,451
5.89
5.80
9.73
AA3/A1
4.89
6.96
26.65
107.13
2.65
238,593
25.63
16.81
185
3.93
3.89
4.74
AA1/AA2
4.95
4.57
13.53
109.89
1.67
3,656
100.00
0.26
1 Year (1-2)
1.25
1.25
1.25
AA1/AA1
5.00
1.29
1.29
105.33
0.83
66
1.81
0.00
3 Year (2-4)
15
2.28
2.27
2.27
AA1/AA2
4.92
2.42
2.82
109.50
0.93
189
5.17
0.01
5 Year (4-6)
18
2.59
2.58
2.58
AA1/AA2
5.06
2.80
4.71
110.57
1.07
236
6.46
0.02
Insured Bond Index
7 Year (6-8)
20
2.60
2.59
2.59
AA1/AA2
5.15
2.81
6.87
110.82
1.08
372
10.17
0.03
10 Year (8-12)
39
3.44
3.41
3.66
AA1/AA2
5.04
3.89
10.05
111.45
1.34
685
18.73
0.05
15 Year (12-17)
43
4.42
4.37
5.18
AA2/AA3
4.98
5.12
13.67
111.09
1.93
763
20.86
0.05
20 Year (17-22)
27
4.16
4.11
4.83
AA1/AA2
4.82
4.95
18.54
107.74
1.82
888
24.29
0.06
Long (22+)
18
6.23
6.14
9.84
AA2/AA3
4.77
7.60
24.96
109.56
2.64
458
12.51
0.03
AMT Index
1,931
4.38
4.32
6.29
A1/A2
4.99
5.17
15.05
110.13
2.38
52,566
100.00
3.70
940
12.93
12.70
12.99
A1/A2
0.11
12.94
15.27
54.89
3.19
31,143
100.00
2.19
0.50
Discount Bond Index

Long (22+)
Current Coup. Index
Long (22+)
171
20.32
19.88
20.24
A1/A2
0.20
19.93
27.02
34.22
4.18
7,096
22.78
4,437
2.65
2.61
4.65
AA3/A1
4.14
3.09
14.02
101.72
2.23
129,041
100.00
9.09
522
4.26
4.19
9.67
AA3/A1
4.35
5.24
27.00
102.02
2.91
22,065
17.10
1.55
1,258,989 100.00
88.71
Premium Bond Index
43,486
4.85
4.80
6.04
AA2/AA3
4.97
5.67
12.83
114.69
1.76
Long (22+)
3,557
5.79
5.71
9.66
AA3/A1
5.00
6.92
26.46
113.33
2.57
246,359
19.57
17.36
Zero Coupon Index
1,016
11.90
11.69
12.05
AA3/A1
0.00
11.88
14.67
58.44
3.00
35,509
100.00
2.50
3 May 2016
14

FIGURE 22
Number
Issues
Price
Return
Coupon
Return
MTD Total
Return
Past
3m
Past
6m
Year
to Date
Past
12m
Since
Inception
48,514
0.39
0.35
0.74
1.21
3.55
2.42
5.29
1,031.17
Alabama Index
Alaska Index
Arizona Index
Arkansas Index
California Index
Colorado Index
Connecticut Index
Delaware Index
Dist. of Col. Index
Florida Index
Georgia Index
Guam Index
Hawaii Index
Idaho Index
Illinois Index
Indiana Index
Iowa Index
Kansas Index
Kentucky Index
Louisiana Index
Maine Index
Massachusetts Index
Maryland Index
Michigan Index
Minnesota Index
Mississippi Index
Missouri Index
Montana Index
Nebraska Index
Nevada Index
New Hampshire Index
New Jersey Index
New Mexico Index
New York Index
North Carolina Index
North Dakota Index
Ohio Index
Oklahoma Index
Oregon Index
Pennsylvania Index
Puerto Rico Index
Rhode Island Index
South Carolina Index
South Dakota Index
Tennessee Index
Texas Index
Utah Index
Vermont Index
Virginia Index
Virgin Island Index
Washington Index
West Virginia Index
Wisconsin Index
Wyoming Index
364
173
1,089
129
6,724
776
882
188
565
2,950
1,113
66
537
61
1,967
493
120
222
446
491
85
1,749
1,259
819
720
180
500
16
344
558
70
1,338
206
6,116
825
17
1,375
178
637
1,580
173
116
525
23
684
4,715
184
21
1,321
34
2,009
72
688
21
0.48
0.24
0.36
0.29
0.41
0.38
0.32
0.38
0.35
0.40
0.28
0.74
0.45
0.25
0.36
0.28
0.17
0.35
0.22
0.42
0.38
0.37
0.23
0.28
0.26
0.24
0.37
0.11
0.43
0.23
0.13
0.71
0.09
0.45
0.22
0.19
0.41
0.26
0.36
0.37
-0.24
0.28
0.54
0.57
0.20
0.46
0.30
0.14
0.32
0.16
0.34
0.40
0.19
0.26
0.35
0.35
0.35
0.32
0.34
0.33
0.33
0.35
0.34
0.35
0.35
0.38
0.33
0.38
0.36
0.36
0.37
0.34
0.37
0.37
0.35
0.35
0.34
0.37
0.33
0.36
0.34
0.36
0.35
0.35
0.39
0.34
0.34
0.35
0.35
0.38
0.35
0.36
0.32
0.35
0.38
0.37
0.35
0.34
0.34
0.34
0.34
0.36
0.34
0.40
0.34
0.35
0.35
0.38
0.83
0.59
0.71
0.61
0.75
0.72
0.65
0.72
0.69
0.75
0.63
1.12
0.79
0.63
0.73
0.63
0.53
0.69
0.59
0.78
0.72
0.71
0.57
0.64
0.59
0.60
0.71
0.47
0.77
0.58
0.51
1.05
0.43
0.80
0.57
0.57
0.76
0.62
0.68
0.71
0.14
0.64
0.89
0.90
0.54
0.80
0.64
0.49
0.66
0.56
0.68
0.75
0.54
0.64
1.69
0.81
1.15
0.90
1.26
1.48
0.77
1.19
1.28
1.19
1.01
2.30
0.97
0.96
1.35
1.22
0.86
1.16
0.86
1.39
1.34
1.12
0.92
1.16
0.93
1.05
1.30
0.95
1.28
0.77
0.89
1.57
0.95
1.20
0.92
2.01
1.34
0.95
1.17
1.23
2.37
1.20
1.65
2.11
0.98
1.31
0.97
1.33
1.16
0.56
1.02
1.42
0.99
1.23
3.90
2.47
3.36
3.09
3.54
4.02
2.98
3.08
3.88
3.46
2.98
5.46
3.40
3.28
4.11
3.12
2.68
3.93
2.75
3.50
3.79
3.44
2.81
3.43
2.76
3.37
3.47
2.70
3.47
2.48
2.53
5.32
2.43
3.49
2.59
4.28
3.86
2.81
3.42
3.72
5.77
3.16
4.20
5.77
2.97
3.79
2.97
3.88
3.23
2.28
3.24
3.40
2.82
2.88
2.80
1.75
2.47
2.28
2.37
2.89
2.00
2.33
2.55
2.46
2.12
3.73
2.36
2.32
2.47
2.25
2.01
2.61
1.95
2.38
2.69
2.33
2.11
2.21
2.10
2.33
2.54
1.71
2.53
1.76
1.75
3.09
1.97
2.47
1.97
3.02
2.51
2.01
2.45
2.44
3.22
2.44
2.99
3.31
2.20
2.57
2.07
2.44
2.37
1.69
2.25
2.34
2.13
2.18
5.68
4.08
5.21
4.90
5.39
5.85
4.51
4.41
5.51
5.34
4.79
6.70
5.19
5.06
4.82
4.61
4.24
6.05
4.21
5.20
5.45
5.37
4.52
5.32
4.63
4.92
5.41
4.85
5.46
4.14
4.12
6.00
4.05
5.46
4.40
5.55
5.74
4.79
5.52
5.56
6.45
4.66
5.88
7.71
4.77
5.63
4.57
5.59
5.02
3.87
5.11
4.98
4.66
4.15
229.49
220.50
225.61
223.48
242.93
254.46
198.21
195.55
239.14
235.19
216.80
250.29
215.26
218.95
243.96
254.33
239.77
226.18
228.22
247.11
240.71
232.77
201.57
234.20
214.74
228.57
227.33
238.07
225.74
225.31
236.43
224.99
209.79
232.66
219.15
249.05
211.64
216.61
234.28
233.62
175.94
223.25
243.47
290.36
222.53
241.32
208.03
237.22
211.41
170.52
235.79
243.46
229.63
222.26
3 May 2016
15

FIGURE 23
Number
Issues
Municipal Bond Index 48,863
Alabama Index
364
Alaska Index
172
Arizona Index
1,088
Arkansas Index
128
California Index
6,802
Colorado Index
798
Connecticut Index
902
Delaware Index
188
Dist. of Col. Index
564
Florida Index
2,987
Georgia Index
1,101
Guam Index
66
Hawaii Index
527
Idaho Index
60
Illinois Index
1,960
Indiana Index
505
Iowa Index
120
Kansas Index
222
Kentucky Index
458
Louisiana Index
498
Maine Index
85
Massachusetts Index
1,774
Maryland Index
1,267
Michigan Index
814
Minnesota Index
723
Mississippi Index
180
Missouri Index
510
Montana Index
16
Nebraska Index
353
Nevada Index
543
New Hampshire Index
70
New Jersey Index
1,355
New Mexico Index
206
New York Index
6,102
North Carolina Index
832
North Dakota Index
20
Ohio Index
1,418
Oklahoma Index
177
Oregon Index
627
Pennsylvania Index
1,588
Puerto Rico Index
169
Rhode Island Index
119
South Carolina Index
530
South Dakota Index
23
Tennessee Index
677
Texas Index
4,778
Utah Index
184
Vermont Index
21
Virginia Index
1,342
Virgin Island Index
33
Washington Index
2,013
West Virginia Index
72
Wisconsin Index
711
Wyoming Index
21
Durat.
Mod.
To
MDur. To Adj.
Worst
Worst
Durat.
4.83
4.79
4.57
4.62
4.49
4.92
5.38
4.61
4.99
4.69
4.62
4.40
5.57
5.06
4.35
5.18
4.48
4.00
5.34
4.35
4.74
4.85
5.04
4.33
4.48
4.65
4.84
5.00
2.94
4.94
3.91
3.41
5.58
3.86
4.67
4.18
5.69
5.02
4.02
5.12
4.71
6.66
4.36
5.20
6.50
4.56
5.15
4.54
5.10
4.57
3.57
4.74
3.94
4.74
3.71
4.78
4.73
4.52
4.57
4.44
4.87
5.32
4.56
4.94
4.63
4.57
4.36
5.50
5.01
4.31
5.10
4.43
3.96
5.28
4.30
4.69
4.79
4.99
4.30
4.43
4.61
4.79
4.94
2.90
4.88
3.87
3.38
5.49
3.83
4.62
4.15
5.61
4.96
3.98
5.07
4.65
6.49
4.31
5.14
6.41
4.51
5.10
4.50
5.03
4.53
3.52
4.70
3.90
4.70
3.66
Quality
6.07
AA2/AA3
6.54
AA3/A1
5.70
AA2/AA3
5.45
AA2/AA3
5.84
AA2/AA3
5.96
AA2/AA3
7.13
AA3/A1
5.63
AA2/AA3
6.87
AA2/AA3
5.81
AA2/AA3
5.78
AA3/A1
5.51
AA2/AA3
7.53
A3/BAA1
5.88
AA2/AA3
5.72
A1/A2
6.91
A1/A2
6.07
AA3/A1
5.29
AA2/AA3
6.65
AA2/AA3
5.60
A1/A2
6.56
A1/A2
7.09
AA3/A1
6.32
AA1/AA2
5.55
AA1/AA2
5.92
AA3/A1
5.87
AA1/AA2
5.61
AA3/A1
6.72
AA2/AA3
5.12
A1/A2
7.26
AA3/A1
4.62
AA2/AA3
4.04
AA3/A1
6.70
A2/A3
4.34
AA2/AA3
5.72
AA2/AA3
5.09
AA1/AA2
8.44
A1/A2
6.38
AA2/AA3
5.55
AA3/A1
5.93
AA1/AA2
6.16
A1/A2
7.76
A2/A3
5.93
A1/A2
7.25
AA3/A1
12.20
AA3/A1
6.01
AA2/AA3
6.63
AA2/AA3
5.74
AA1/AA2
7.63
AA3/A1
5.77
AA1/AA2
4.62 BAA2/BAA3
5.85
AA1/AA2
5.16
A1/A2
6.03
AA2/AA3
6.31
A1/A2
Coupon
Time To
Worst
Matur.
Price
Yield To
Worst
Market
Value
Index
4.79
4.71
4.91
4.86
4.35
4.74
4.61
4.56
4.76
4.65
4.87
4.83
5.26
4.85
5.28
4.86
4.84
4.98
4.74
5.02
5.00
4.68
4.86
4.63
5.02
4.58
5.02
4.68
4.57
4.75
4.88
5.27
4.59
4.66
4.88
4.82
4.82
4.81
4.85
4.50
4.76
4.73
4.98
4.83
4.50
4.82
4.74
4.73
4.79
4.66
5.31
4.79
4.73
4.91
4.98
5.59
6.15
5.25
5.55
5.04
5.69
6.45
5.30
5.71
5.50
5.29
5.07
6.59
5.84
5.00
6.23
5.16
4.51
6.17
4.99
5.48
5.54
5.93
4.94
5.22
5.28
5.59
5.76
3.25
5.72
4.50
3.81
6.15
4.35
5.41
4.75
6.69
5.75
4.66
5.75
5.42
8.25
5.11
6.05
7.57
5.30
5.96
5.34
5.99
5.22
4.06
5.45
4.45
5.44
4.19
13.00
14.67
9.73
11.67
10.53
13.63
14.66
10.42
12.91
14.63
12.72
11.40
18.22
11.12
11.93
13.77
14.28
11.28
12.85
11.88
14.34
14.81
12.90
9.97
13.06
10.32
9.56
12.86
14.62
14.16
10.65
13.56
12.61
8.94
13.59
11.24
17.42
12.90
12.39
10.42
13.31
13.66
11.67
16.64
22.74
11.37
14.11
10.53
22.20
10.94
13.07
11.13
15.03
11.73
21.55
110.73
110.08
113.48
113.51
110.80
110.53
108.11
112.24
113.98
109.05
110.65
113.05
115.14
115.53
113.72
104.66
111.36
112.48
114.61
111.50
112.59
111.34
114.23
112.22
111.72
112.27
114.64
111.51
105.87
111.99
111.99
112.44
99.29
111.60
113.85
112.63
110.64
112.21
111.47
109.24
111.21
69.71
111.08
112.38
109.49
110.82
110.76
113.41
110.99
112.80
109.09
113.59
111.15
114.16
107.17
1.84
2.04
1.77
1.63
1.73
1.66
2.09
1.70
1.81
1.82
1.78
1.63
2.54
1.65
1.79
2.76
1.93
1.86
1.90
1.95
2.13
2.07
1.70
1.55
2.03
1.58
1.82
1.86
1.97
2.00
1.53
1.58
2.64
1.49
1.67
1.50
2.51
1.83
1.69
1.59
2.00
4.13
2.22
2.06
2.96
1.81
1.87
1.56
2.26
1.63
2.37
1.63
1.93
1.69
2.13
1,419,174
10,563
3,105
27,429
2,457
247,437
20,973
21,433
3,205
17,729
71,827
32,065
2,321
12,567
1,284
62,304
14,222
2,192
4,907
11,300
15,400
1,429
56,231
28,201
24,870
16,122
3,422
11,725
707
7,630
13,548
1,492
52,354
4,487
217,471
21,909
435
31,972
3,958
12,131
49,276
7,662
2,561
15,002
574
16,098
129,981
6,136
614
25,783
1,419
48,509
1,783
18,412
550
100.00
0.74
0.22
1.93
0.17
17.44
1.48
1.51
0.23
1.25
5.06
2.26
0.16
0.89
0.09
4.39
1.00
0.15
0.35
0.80
1.09
0.10
3.96
1.99
1.75
1.14
0.24
0.83
0.05
0.54
0.95
0.11
3.69
0.32
15.32
1.54
0.03
2.25
0.28
0.85
3.47
0.54
0.18
1.06
0.04
1.13
9.16
0.43
0.04
1.82
0.10
3.42
0.13
1.30
0.04
3 May 2016
16
FIGURE 24
Municipal Index, Market Value Breakdown by Purpose Type
PRE
7%
INS
0%
FIGURE 25
HY Muni Index, Market Value Breakdown by Purpose Type
GO
11%
GO
27%
REV
66%
REV
89%
FIGURE 26
Municipal Index, Market Value Breakdown by Purpose Class
FIGURE 27
HY Muni Index, Market Value Breakdown by Purpose Class
LEAS
7%
SPET
10%
ST
16%
WTR
10%
LEAS
3%
LOCL
14%
ED
8%
RESR
0%
ED
7%
WTR
4%
TRAN
2%
RESR
0%
TRAN
16%
HOSP
19%
PWR
3%
HOSP
9%
PWR
HSG
6% IDRS 1%
3%
LOCL
5%
ST
7%
SPET
14%
HSG
2%
IDRS
34%
FIGURE 28
Municipal Index, Market Value Breakdown by Maturity
FIGURE 29
HY Muni Index, Market Value Breakdown by Maturity
Long
19%
1 Yr
7%
1 Yr
1%
3 Yr
12%
5 Yr
9%
20 Yr
13%
3 Yr
3%
5 Yr 7 Yr
3% 4%
10 Yr
11%
Long
47%
15 Yr
12%
7 Yr
8%
15 Yr
17%
10 Yr
15%
3 May 2016
20 Yr
19%
17
Taxable Indices
3 May 2016
18
VARIOUS STATISTICS
FIGURE 30
Taxable Municipals, by Rating
FIGURE 31
US Long Credit Index, by Rating
AAA
3%
AAA
8%
BAA
10%
A
22%
AA
12%
BAA
47%
A
38%
AA
60%
FIGURE 32
Taxable Municipals vs. US Long Credit (OAS, bp)
FIGURE 33
Taxable Municipals, OAS by Sector (bp)
280
210
260
200
190
240
180
220
170
200
160
180
150
140
160
130
140
120
120
Nov-15
Dec-15
Jan-16
Feb-16
Taxable Municipals
Mar-16
Apr-16
110
Nov-15
US Long Credit
Dec-15
State GO
Jan-16
Feb-16
Local GO
Mar-16
Trans.
FIGURE 34
Taxable Municipal vs. US Long Credit (Ex Ret, bp)
FIGURE 35
GO and Revenue Bond, Excess Returns (bp)
600
500
400
300
200
100
0
-100
-200
-300
-400
-500
200
471
269
148
22
95
28
114
150
-78 -63
113
100
Jan-16
Taxable Municipals
3 May 2016
101
-60
-150
Feb-16
84
-50
-389
Dec-15
137
46
50
-100
Nov-15
Special Tax
145 151
0
-114 -85
Apr-16
Mar-16
US Long Credit
Apr-16
Nov-15
Dec-15
GO bonds
-127
Jan-16
-84 -75
Feb-16
Mar-16
Apr-16
Revenue bonds
19
TAXABLE INDICES: SIZE, DURATION, AND SPREADS

FIGURE 36
Size, Duration, and Spreads
Index
U.S. Credit Index
Corporate
Index Rating
# of
Bonds
Mkt. Value
($mn)
OAS (bp)
OAD
Apr-16
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15 Aug-15 July-15
Jun-15
May-15
A2/A3
6,475
5,760,196
7.2
139
154
184
181
155
147
150
160
155
146
137
127
A3/BAA1
5,675
4,713,291
7.3
146
163
197
193
165
155
159
169
163
154
145
133
A3/BAA1
3,391
2,899,007
7.8
148
168
210
216
183
170
172
184
177
164
153
141
Utility
A2/A3
796
352,103
9.6
142
151
163
160
150
145
147
152
149
143
137
129
Financial Institutions
A2/A3
1,488
1,462,181
5.8
142
155
178
157
134
129
137
145
142
138
133
119
Industrial
AA2/AA3
800
1,046,905
6.5
107
114
125
123
110
111
112
122
122
115
107
101
Foreign Agency
AA2/AA3
188
281,083
5.0
107
118
132
130
109
96
97
107
146
131
121
111
Foreign Local Govt
AA2/AA3
341
225,090
9.7
142
149
154
148
143
143
152
155
147
143
135
132
AA3/A1
288
167,082
11.4
170
178
183
176
170
171
183
188
181
176
167
164
Non-Corporate
Taxable Municipals
Sovereigns
Supranationals
U.S. Long Credit Index
Taxable Municipals
BAA1/BAA2
123
238,515
8.6
183
191
220
221
192
204
199
233
194
184
169
160
AAA/AA1
148
302,218
3.7
20
22
24
24
21
17
17
17
16
17
17
13
A2/A3
2,095
1,731,897
13.8
205
223
257
252
225
217
218
230
224
213
202
193
AA3/A1
288
167,082
11.4
170
178
183
176
170
171
183
188
181
176
167
164
AA3/A1
77
62,296
10.0
185
195
201
191
180
181
194
201
193
186
179
178
State GO
AA3/A1
44
46,302
9.8
184
197
203
194
181
182
195
201
193
185
180
178
Local GO
AA2/AA3
33
15,993
10.4
188
191
193
183
179
179
192
199
192
189
175
176
AA2/AA3
210
104,408
12.3
162
169
173
168
163
165
177
181
173
170
161
156
AA3/A1
55
34,640
13.2
147
157
163
157
152
153
165
170
165
163
151
149
Special Tax
AA2/AA3
41
19,849
10.5
150
157
162
158
153
155
165
171
162
157
148
146
Industrial Revenues
AA2/AA3
1,107
10.4
137
135
132
131
125
128
139
144
139
137
133
130
Water & Sewer
AA1/AA2
27
11,244
12.9
147
152
156
147
140
141
155
156
151
147
139
137
Education
AA1/AA2
30
11,945
14.5
142
144
148
145
143
145
153
155
148
148
143
145
General Obligations
Revenue
Transportation
Power
AA3/A1
23
12,439
13.4
193
199
206
199
189
191
203
201
197
188
181
175
Leasing
A1/A2
27
11,308
8.8
234
240
240
230
232
237
254
258
240
246
235
208
AA3/A1
1,583
12.9
159
178
186
177
177
173
180
192
203
187
190
182
Insured
NR
0.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Pre-Refunded
A1
378
1.0
29
29
35
33
55
26
40
46
47
55
57
51
Health Care
3 May 2016
20
TAXABLE INDICES: EXCESS RETURNS

FIGURE 37
Excess Returns (bp)
Index
YTD
LTM
3 Mos.
Apr-16
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
U.S. Credit Index
157
-54
351
134
236
-26
-193
-60
22
90
-55
-61
-53
-55
-30
Corporate
171
-34
387
150
262
-31
-215
-62
22
85
-33
-60
-52
-61
-36
Industrial
260
-60
531
181
333
-267
-94
98
-52
-83
-76
-60
-45
Utility
138
-75
220
118
114
-17
-86
-29
12
63
-2
-62
-35
-50
-98
11
146
93
155
-103
-142
-8
49
68
-3
-17
-10
-65
-7
94
-144
189
65
123
-2
-96
-55
19
109
-145
-62
-58
-34
-6
124
-341
237
81
136
17
-113
-102
-2
97
-255
-108
-57
-37
Financial Institutions
Non-Corporate
Foreign Agency
Foreign Local Govt
Taxable Municipals
42
32
107
86
75
-57
-66
20
113
55
-50
-36
-62
-13
-38
51
39
134
114
95
-78
-85
28
148
75
-63
-51
-83
-13
-53
-1
227
-188
435
92
306
27
-209
-117
-19
298
-266
-101
-122
-64
Supranationals
-10
20
13
-1
-11
-10
-4
-17
U.S. Long Credit Index
306
-182
701
269
471
-63
-389
-114
22
157
-117
-124
-123
-80
-77
Sovereigns
51
39
134
114
95
-78
-85
28
148
75
-63
-51
-83
-13
-53
44
29
169
137
113
-84
-127
145
108
-66
-65
-65
15
-89
State GO
78
22
219
167
130
-83
-143
-5
142
112
-75
-75
-47
-112
Local GO
-54
54
25
48
64
-89
-78
19
155
94
-38
-33
-119
42
-20
57
46
114
101
84
-75
-60
46
151
54
-62
-43
-96
-31
-30
134
130
202
152
121
-76
-74
40
159
73
-49
-36
-156
-9
-26
Taxable Municipals
General Obligations
Revenue
Transportation
26
25
77
66
63
-54
-53
43
125
75
-82
-53
-39
-21
-50
Industrial Revenues
-104
-86
-33
-6
-15
-11
-69
52
133
70
-43
-7
-197
-34
40
Special Tax
Water & Sewer
-45
37
79
77
-121
-81
40
185
31
-73
-39
-91
-18
Education
15
93
53
55
65
-69
-39
48
105
38
-76
-3
-68
37
-11
Power
-99
122
98
107
-87
-122
54
177
-13
-49
-112
-72
-61
-18
Leasing
84
-22
48
73
27
-53
33
70
157
65
-88
12
-67
-159
-87
Health Care
234
371
211
246
70
-111
13
-42
113
175
161
-188
59
-95
-42
Insured
Pre-Refunded
34
47
30
-37
16
17
16
-5
-4
3 May 2016
21
TAXABLE MUNICIPAL INDEX: LARGEST 25 ISSUERS

FIGURE 38
Largest 25 Issuers
Ratings
Index / Issuer
Moody's
# of
Mkt. Value ($mn)
S&P
Fitch
Bonds
Amount
Excess Returns (bp)
OAS
Pct.
OAD
(bp)
MTD
3 Mos
YTD
LTM
NA
NA
NA
288
167,082
100%
11.4
170
114
134
51
39
State of California
AA3
AA-
A+
12
20,499
12%
11.5
144
182
382
162
121
State of Illinois
BAA1
A/A-
A-/BBB+
10
13,409
8%
7.6
309
240
137
(16)
(129)
Port Authority of NY & NJ
AA3
AA-
AA-
10
7,192
4%
16.3
133
290
449
313
66
NJ State Turnpike Auth
A3
A+
4,896
3%
13.2
155
249
300
252
180
University of California
AA2/AA3
AA/AA-
AA/AA-
10
4,775
3%
13.7
154
98
121
44
200
Bay Area Toll Authority
AA3/A1
AA/AA-
AA
4,742
3%
15.3
147
171
273
193
248
A2/A3
AA/AA-
A-
10
4,467
3%
6.6
250
94
138
217
12
Metropolitan Trans. Authority (NY)
A1
AA/AA-
AA-/A+
4,323
3%
12.5
163
74
60
(12)
45
NY City Municipal Water Fin. Auth.
AA1
AA+
AA+
3,833
2%
14.0
124
87
79
(63)
121
Los Angeles Unified School District
AA2
AA-
NR
3,507
2%
10.9
147
108
83
64
91
American Municipal Power-Ohio Inc
A2/A3
3,473
2%
13.8
229
53
11
(87)
(304)
Municipal Elect. Auth. Georgia (MEAG)
Taxable Municipals
NJ Econ. Development Auth
A2/A3
A+/A
A+/A
3,279
2%
13.7
249
239
358
93
(60)
City of New York NY
AA2
AA
AA
3,175
2%
10.2
141
18
42
36
146
Florida Hurricane Catastrophe Fund
AA3
AA
AA
2,784
2%
3.6
81
72
57
85
145
Commonwealth of Massachusetts
AAA/AA1
AAA/AA+
AA+
2,681
2%
11.1
110
136
104
81
49
Los Angeles Department of Water & Power
AA2/AA3
AA/AA-
AA/AA-
2,636
2%
13.5
138
179
212
71
114
A1
AA
NR
2,572
2%
10.9
268
348
366
221
(215)
NY State Dorm. Auth - Pers Inc Tax
AA1
AAA
AA+
2,468
1%
11.5
130
49
157
60
141
NY City Transitional Finance Auth.
AA1/AA2
AAA/AA+
AAA/AA+
2,255
1%
11.2
140
58
25
(90)
(9)
AAA
AAA
AAA
2,184
1%
13.7
112
40
(42)
(30)
(128)
(473)
Chicago Trans Auth-Sales Tax
State of Texas
A3
A-
A-
2,172
1%
7.8
305
60
(55)
(89)
State of Oregon
AA1
AA+
AA+
2,169
1%
6.0
93
(11)
(16)
58
99
State of Connecticut
AA3
AA
AA
2,140
1%
10.0
170
10
45
15
(128)
Dallas Area Rapid Transit
AA2
AA+
NR
1,969
1%
13.1
118
(19)
(79)
(88)
62
Ohio State University
AA1
AA
AA
1,951
1%
18.3
133
134
25
NJ Trans. Trust Fund Auth
Note: As of April 29, 2016. Source: Barclays Risk Analytics and Index Solutions
3 May 2016
22
Municipal Supply, Redemptions,

Fund Flows, and Secondaries
3 May 2016
23
HISTORICAL SUPPLY
FIGURE 39
Municipal Supply ($bn)
Year
GO
Revenue
Total
New Capital
Refunding
Total
1996
64.6
120.6
185.2
124.0
61.2
185.2
1997
72.4
148.3
220.7
137.8
82.9
220.7
1998
93.7
193.1
286.8
160.8
126.0
286.8
1999
71.0
156.5
227.5
157.4
70.1
227.5
2000
66.6
134.3
200.9
165.1
35.7
200.8
2001
101.7
186.0
287.7
197.2
90.5
287.7
2002
125.7
231.8
357.5
236.9
120.6
357.5
2003
142.1
240.6
382.7
262.2
120.5
382.7
2004
129.6
230.1
359.7
229.1
130.7
359.8
2005
144.2
264.0
408.2
222.3
185.9
408.2
2006
114.8
272.0
386.8
256.0
130.5
386.5
2007
131.0
293.5
424.5
273.7
155.6
429.3
2008
110.2
276.2
386.4
208.2
181.4
389.6
2009
154.9
251.9
406.8
261.4
148.4
409.7
2010
147.0
283.4
430.4
279.8
153.4
433.1
2011
107.8
187.2
294.9
153.1
141.9
294.9
2012
135.3
243.6
378.9
148.0
231.3
379.3
2013
124.6
210.4
334.9
161.3
173.6
334.9
2014
132.7
204.9
337.5
144.7
192.8
337.5
2015
153.4
249.7
403.1
151.1
252.0
403.1
Note: Supply amounts may differ due to rounding. Source: SIFMA.org, SDC
FIGURE 40
Municipal Supply by Month ($bn)
Total Supply
2014
2015
2016
GO
2014
2015
Revenue
2016
2014
2015
New Capital
2016
2014
Refunding
2015
2016
2014
2015
2016
Jan
19.5
29.3
25.4
8.0
10.4
11.5
11.6
19.0
14.0
11.7
8.4
10.5
7.8
20.9
14.9
Feb
16.5
33.4
31.4
6.7
14.5
14.3
9.8
18.9
17.1
9.6
10.6
12.5
6.9
22.7
19.0
10.2
15.4
18.3
35.3
26.6
14.6
13.1
28.0
19.1
14.4
22.3
Mar
28.5
45.7
42.0
33.7
14.4
20.7
19.7
14.2
14.1
24.9
22.3
19.5
10.2
Apr
26.6
41.1
11.2
16.1
15.4
25.0
13.4
13.1
May
27.8
36.8
8.2
16.0
19.6
20.8
13.4
14.3
Jun
35.8
40.0
16.4
16.0
19.3
24.0
15.3
19.5
20.5
21.0
Jul
27.6
35.4
10.5
13.6
17.2
21.8
11.9
14.8
15.8
20.5
Aug
24.6
32.3
9.4
10.5
15.2
21.8
9.7
12.2
14.9
20.1
Sep
25.0
24.4
8.9
9.2
16.1
15.2
9.9
9.5
15.1
14.9
Oct
37.0
35.0
13.2
11.6
23.8
23.4
14.2
13.7
22.8
21.2
Nov
29.5
25.2
12.3
8.3
17.2
16.8
12.1
12.4
17.4
12.7
Dec
39.0
24.6
13.3
6.5
25.7
18.1
13.0
12.3
26.0
12.2
Total
337.5
403.1
132.7
153.4
204.9
249.7
144.7
151.1
192.8
252.0
132.6
59.7
72.9
52.9
79.6
Note: Supply amounts are as reported and may differ due to rounding. Source: SIFMA.org, SDC
3 May 2016
24

FIGURE 41
2016 Redemptions ($mn)
$bn
50
45
40
35
30
25
20
15
10
5
0
Jan
Feb
Mar
Apr
May
Jun
Median (2001-15)
Jul
Aug
2015
Sep
Oct
Nov
Dec
2016*
Note: As of April 8, 2016. Includes current refundings, advance refundings, and maturing bonds. Source: IDC
FIGURE 42
Municipal Fund Flows ($mn)
Month
2012
2013
2014
2015
Jan
6,660
7,181
433
4,600
4,269
Feb
6,375
2,506
1,681
2,630
4,690
Mar
3,561
-271
1,553
1,482
6,012
Apr
2,663
-1,750
1,190
398
3,372
May
4,935
-937
3,545
-631
Jun
3,989
-16,573
2,349
-1,731
Jul
5,451
-10,233
1,409
-655
Aug
5,468
-12,071
3,256
-1,446
Sep
4,061
-6,433
3,017
-488
Oct
4,914
-5,395
2,154
2,381
Nov
5,250
-4,459
2,966
2,482
Dec
-3,157
-10,060
4,435
5,770
Total
50,170
-58,495
27,988
14,792
2016
18,343
Note: ICI data through April 20, 2016. Source: ICI
3 May 2016
25

FIGURE 43
Most Actively Traded Tax-Exempts ($1mn-plus in Trade Size)
CUSIP
74514LE86
13080SML5
452151LF8
118217AU2
167505QY5
38122NPB2
888808DF6
74514LB89
118217AT5
Moodys, S&P,
State and Fitch Ratings Cpn
Description
Commonwealth Of Puerto
Rico
Loma Linda Univ Med Obl
State Of Illinois
Buckeye Tobacco
Settlement Financing
Authority
Chicago Board Of Education
Golden State Tobacco
Securitization Corp
Tobacco Settlement
Financing Corp/Nj
Commonwealth Of Puerto
Rico
Buckeye Tobacco
Settlement Financing
Authority
Starting
Yld
Min Yld Max Yld Last Yld Maturity Size Number
Maturity
(%)
(%)
(%)
(%)
($000s)
of Trades
PR
CA
IL
Caa3/CC/CC
NA/BB/BB+
Baa1/A-/BBB+
8
7/1/35
5.25 12/1/56
5.1 6/1/33
12.28
4.68
5.73
12.28
4.12
5.45
13.14
4.68
5.73
12.99
4.12
5.45
3,500,000
562,360
7,650,000
126
71
69
OH
IL
B3/B-/CCC
NA/B+/B+
5.875 6/1/47
7 12/1/44
6.28
7.75
6.14
7.47
6.36
7.75
6.14
7.47
1,383,715
665,000
52
34
CA
B3/B-/CCC
5.125 6/1/47
5.60
5.27
5.60
5.27
693,575
31
NJ
B3/B-/NA
6/1/41
5.63
5.41
5.65
5.41
1,263,590
27
PR
Caa3/CC/CC
7/1/41
9.25
9.02
9.63
9.29
632,975
26
OH
B3/B-/CCC
6.5
6/1/47
6.53
6.24
6.75
6.27
750,000
26
Note: Excludes debt with maturities less than one year and maturity size below $250mn. Excludes trade sizes below $1mn. For April 2016 only.
Source: MSRB, Bloomberg, Moodys, S&P, Fitch, Barclays Risk Analytics and Index Solutions
FIGURE 44
Most Actively Traded Taxable Munis ($1mn-plus in Trade Size)
CUSIP
Issuer
Met Govt Nashville

& Davidsonc
13063A5G5 California St
Florida St Brd Of
341271AB0
Admin Fin Co
13063BJC7
California St
Florida St Brd Of
341271AA2
Admin Fin Co
13063BFR8 California St
13063A5E0 California St
Florida St Hurricane
34074GDH4
Catastrop
13063BBU5 California St
452152HU8 Illinois St
592041WJ2
Moodys, S&P, and

State
Fitch Ratings
Coupon Maturity
Starting
OAS Min OAS Max OAS Last OAS
(bp)
(bp)
(bp)
(bp)
Maturity
Size
($000s)
Number of
Trades
TN
A3/NA/NA
4.053
7/1/26
162
142
168
142
300,000
42
CA
Aa3/AA-/A+
7.55
4/1/39
172
154
172
154
3,000,000
42
FL
Aa3/AA/AA
2.638
7/1/21
97
77
99
77
650,000
39
CA
Aa3/AA-/A+
7.6
11/1/40
167
151
167
151
2,110,000
35
FL
Aa3/AA/AA
2.163
7/1/19
104
64
104
76
550,000
35
CA
CA
Aa3/AA-/A+
Aa3/AA-/A+
7.625
7.5
3/1/40
4/1/34
172
172
157
154
174
174
159
154
1,250,000
2,000,000
33
29
FL
Aa3/AA/AA
2.995
7/1/20
104
91
112
92
1,000,000
28
CA
IL
Aa3/AA-/A+
Baa1/A-/BBB+
7.35
5.877
11/1/39
3/1/19
172
193
156
193
175
210
157
195
908,000
900,000
27
25
Note: Excludes debt with maturities less than one year and maturity size below $250mn. Excludes trade sizes below $1mn. For April 2016 only.
Source: MSRB, Bloomberg, Moodys, S&P, Fitch, Barclays Risk Analytics and Index Solutions
3 May 2016
26
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Municipal Credit Research

Municipal Strategy Monthly

Performance and Outlook

Outlook and Recommendations

Long-dated tax-exempt hospitals look attractive to us. In particular, the single-A

Given their recent underperformance compared to corporates, taxable munis look

Barclays | Municipal Strategy Monthly

April Market Overview

Barclays | Municipal Strategy Monthly

Municipal High Yield Index ex PR

Source: Barclays Research

Muni Market Technicals

High Yield Munis

Relative Value and Recommendations

Barclays | Municipal Strategy Monthly

Source: Barclays Risk Analytics and Index Solutions

Long Hospital (AA) - Long Revenue (AA)

Source: Barclays Risk Analytics and Index Solutions

Barclays | Municipal Strategy Monthly

Chicago Wastewater 5% 2044

BAB minus Long Credit - AAA

Source: Barclays Research

US Credit Corp (Single-A, 30y)

US Credit Corp (Single-A, 30y)

Source: Barclays Risk Analytics and Index Solutions

Source: Barclays Risk Analytics and Index Solutions

Barclays | Municipal Strategy Monthly

Barclays | Municipal Strategy Monthly

ASSET CLASS RETURNS AND RATIOS

U.S. High Yield

U.S. High Yield

U.S. High Yield

Barclays | Municipal Strategy Monthly

Tax-adjusted Muni HY**

Annualized Standard Deviation (%)

Annualized Standard Deviation (%)

Barclays | Municipal Strategy Monthly

MUNICIPAL HIGH YIELD SPREADS AND PERFORMANCE

04/29/16 Spread = 133bp

04/29/16 Spread = 466bp

Barclays | Municipal Strategy Monthly

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Water & Sewer

Total Puerto Rico

Barclays | Municipal Strategy Monthly

MUNICIPAL INDICES TOTAL RETURNS AND STATISTICS

Long Bond (22+)

Long Term GO (17+)

Water & Sewer

1 Year Preref (1-2)

3 Year Preref (2-4)

5 Year Preref (4-6)

7 Year Preref (6-8)

New York Exempt

Zero Coupon Index