Taylor Riggs

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.

Jefferies & Co. has hired a new managing director in its municipal trading business, one of its first muni hires this year.

Against a backdrop of investors continuing to pull money from tax-exempt bond funds, the municipal market’s first-ever exchange-traded fund to focus specifically on closed-end muni funds has launched.

MBIA Insurance Corp. voluntarily dismissed with prejudice its case against Bank of America Merrill Lynch, prompting analysts to speculate that a settlement could be reached soon.

The biggest deal expected this week is Wednesday's $760 million taxable and tax-exempt offering from the Dormitory Authority of the State of New York, which will be priced by Wells Fargo. A retail order period on Tuesday will precede institutional pricing.

Credit losses in the municipal bond market for U.S. property and casualty insurance companies are projected to remain low, but the market is still at risk due to high muni exposure, according to a Moody's Investors Service report.

Credit losses in the municipal bond market for U.S. property and casualty insurance companies are projected to remain low, but the market is still at risk due to high muni exposure, according to a Moody's Investors Service report.

Ambac Financial Group, the bankrupt holding company for bond insurer Ambac Assurance Corp., filed a plan of reorganization in bankruptcy court this week, but quickly came under criticism from the Wisconsin regulator in charge of overseeing Ambac Assurance.

The New York Supreme Court ruled that rating agencies must produce internal documents pertaining to securities issued by Countrywide Home Loans Inc. and insured by MBIA Insurance Corp.

Underwriters and investment managers continue to expand their municipal teams despite slow business this year, as firms realize there is an increased need for independent credit research.

Low issuance has made the underwriting business more competitive as the top three underwriters battle to maintain their market share.