Taylor Riggs

Military Housing Privatization Initiative bond financings could be negatively affected by budget cuts expected to hit the Department of Defense, according to Moody's Investors Service.

Health care veteran Jim Mitchell has rejoined Fitch Ratings as part of the business and relationship management team.

Tobacco bonds have been on the defensive for several years now as the number of smokers dwindles. But for some yield-addicted investors, tobacco bonds are now seen as a buying opportunity despite their risks.

Alan Spen is rejoining Fitch Ratings as a senior director in its U.S. public power group after a three-year hiatus, coming back to a group he helped create years ago.

Even amid record-low muni yields, new issuance is expected to take a hit this week, with $3.65 billion of new money coming to market, down from last week’s revised $4.72 billion.

Bond insurer CIFG Assurance NA sued Goldman, Sachs & Co. and M&T Bank Tuesday for fraud and breach of contract involving its commitment to guarantee $275 million of mortgage-backed securities.

The municipal market can expect to see a surge of municipal issuance this week, with $5.28 billion coming to market, up from last week’s revised $2.55 billion.

The municipal bond insurance world will not be directly affected by the U.S. Treasury downgrade, according to municipal analysts. However, the likelihood of the bond insurers regaining their AAA status when the U.S. does not hold that title anymore is very slim.

The trend of underwriters partnering with brokerage firms to gain wide access to distribution networks continues with the latest match between Piper Jaffray and Pershing LLC.

Even with municipal bond yields across the curve dropping to 2011 lows last week, borrowers are still not jumping at the opportunity to come to market.

Health care and housing remain two of the most risky sectors in the municipal market, with the federal health care bill and the sluggish real estate market contributing to skepticism about the sectors. But muni experts say some distressed debt is safe enough to be a buying opportunity.

While the speculative hysteria about across-the-board municipal debt defaults has calmed, many investors are still wondering what bonds remain at risk and how many municipalities will end up in bankruptcy.

Summer doldrums seem to have taken hold of the municipal market, as volume in July and year-to-date is off significantly, and the scenario does not look likely to change soon, with issuance not expected to pick up until fall.

The market can expect $3.25 billion in new volume this week, showing issuers still plan to borrow despite fears prompted by the endless debate about raising the federal debt limit. Issuance will be down from last week’s revised $4.6 billion.

Stifel Financial Corp. has acquired Stone & Youngberg LLC, bringing together its municipal finance and fixed-income securities team with Stifel's public finance, institutional sales and trading, and bond underwriting team.

Stifel Financial said Monday it has acquired Stone & Youngberg LLC.

The municipal market can expect $4.12 billion of new issuance this week, about half of last week’s $8.32 billion.

M.R. Beal & Co. has opened two new offices in Texas, tapping three executives from Sterne Agee in the process.

Janney Capital Markets has named a new head of public finance as it looks to expand its presence in middle markets.

The municipal market this week should see its biggest slate of new issuance so far in 2011, with $8.27 billion expected to come to market.