Securities Data Co. reported that state and...

Securities Data Co. reported that state and local governments issued $98.6 billion in municipal debt in 1987, down from $147 billion in 1986 and $201 billion in 1985. The service said underwriters, who guarantee the sale of securities, also were hurt by a decline in compensation, known as gross spread. In one major category of issues, negotiated fixed-rate revenue bonds, the gross spread fell to $13.48 per $1,000 bond, down from $14.98 in 1986. Merrill Lynch Capital markets led all underwriters, acting as lead manager in 266 issues totaling $8.6 billion, while Salomon Bros. was next with 77 issues totaling $7.7 billion, although the firm abandoned the municipal bond business in October.