[Photo: CoolCaesar / Wikimedia Commons]

Bank of America held its spot as the top underwriter of U.S. state and local debt for a 5th straight year by overseeing $68 billion of sales in 2016 – or 15% of the total underwriting pie. Citigroup overtook JPMorgan Chase for the #2 spot.

Banks benefited from a record pace of municipal-securities sales after yields tumbled to the lowest on record in July, spurring governments to refinance or borrow for public works before the Federal Reserve resumed raising interest rates, as it did last month.

The pace of municipal-bond offerings is largely projected to decline this year, with refinancing expected to slow because of higher interest rates. Even so, first time borrowing may increase “slightly” as governments whose finances have benefited from the more than 7-year economic expansion pour more money into infrastructure.

About three-quarters of the long-term debt issued in 2016 was arranged through so-called negotiated offerings, in which banks are picked ahead of time instead of competing against each other in an auction.