Markets

Kroll Bond Rating Agency downgraded Chicago's general obligation bonds to A-minus from A, citing high fixed costs and one-time fixes. The outlook is negative.

Issuance for next week falls to an estimated $5.151 billion, with $3.959 billion of negotiated deals and $1.193 billion of competitive deals on tap.

The municipal bond market's initial negative reaction to this month's Southern California wildfires has eased, with secondary spreads starting to tighten.

Investors added $2.028 billion to municipal bond mutual funds in the week ending Wednesday, following $251.7 million of outflows the prior week, according to LSEG Lipper data.

The introduction of new engines in a northern power plant and the opening of a solar farm in the south have reduced the authority's operating costs.

Issuance was led by a $2 billion retail pricing from the University of California in the negotiated market and a $1.2 billion competitive deal from Washington.

Broker-dealer Siebert Williams Shank's foundation donated $100,000 to two organizations aiding Los Angeles-area residents affected by the wildfires.

There are eight municipal bond interval funds, three of which launched last year, promising fewer liquidity constraints and the potential for higher returns.

Underperforming since the calendar turned, "munis have continued to cheapen over the past three weeks as Treasury returns are about flat for the year while munis are down 0.31%," said Jason Wong, vice president of municipals at AmeriVet Securities.

The Los Angeles-area wildfires have sparked a negative rating watch for several credits from Fitch Ratings.