Far West

SAN FRANCISCO - Moody's Investors Service downgraded California Housing Finance Agency home mortgage revenue bonds for the second time this year, affecting $5 billion of debt amid the frail state housing market.

WASHINGTON - State and local governments issuing new muni bonds are disclosing that President Obama's proposed 28% cap on tax-exempt interest for higher-income taxpayers, if enacted, could lower the value of the bonds or impair their marketability.

WASHINGTON - Issuers vowed to resist a draft bill that would authorize the Securities and Exchange Commission to require them to disclose primary and secondary market bond documents and direct the content and timing of those documents, saying it would open the door to unfettered regulation of their disclosures.

The Internal Revenue Service has completed an audit of $51.1 million of auction-rate securities the Orange County, Fla., Health Facilities Authority issued in 2005 for an Orlando health care provider without changing the tax-exempt status of the bonds.

SAN DIEGO - Though municipal bankruptcies may never become widespread, industry insiders warned during The Bond Buyer's California Public Finance Conference more will come because of the pressure on local governments.

WASHINGTON - Rep. Mike Quigley, D-Ill., has drafted legislation that would authorize the Securities and Exchange Commission to both require issuers to disclose primary and secondary market bond documents directly or indirectly through dealers or others, and to direct the content and timing of those documents.

President Obama has signed the bill extending Federal Aviation Administration and highway funding.

CARLSBAD, Calif. - The air of uncertainty surrounding California's redevelopment agencies and their bonds is not likely to be resolved until early next year, according to panelists who spoke Thursday at The Bond Buyer's California Public Finance Conference.

The Securities and Exchange Commission chairman told House committee members that the agency proposed an overly broad definition of municipal advisor, while the top Democrat on the panel said the Dodd-Frank Act went too far by authorizing the creation of a new SEC muni securities office.

CARLSBAD, Calif. - With low volume and demand lacking in the face paltry yields, the municipal market must tackle structural problems, according to industry insiders at The Bond Buyer's California Public Finance Conference.