Heavy competition for a significantly lower volume of municipal bonds drove a sharp decline in overall underwriting spreads to $3.54 in the first half of 2022, the lowest level in 20 years. The latest data from Refinitiv representing the first six months of 2022 underscores what has been a steady and developing trend over the last two decades, the data showed. For the first time in 20 years, gross underwriting spreads — the payment or underwriting discount an underwriter receives to market a deal — fell to under $4 per $1,000 for all bonds, compared with 2003 when spreads were at $5.20, according to the data.
Source: The Bond Buyer
