Markets

California Gov. Jerry Brown proposes paying off the state's long-term debt, including all economic recovery bonds, and adding to its rainy day fund in his $106.8 billion general fund spending plan.

Los Angeles is hosting its 2nd Regional Investor Conference 2014 on Feb. 26-27 at Universal Studios and Paramount Studios.

Thornburg Investment Management has launched a low duration municipal bond fund aimed at investors looking for a tax-exempt income stream as interest rates rise.

The municipal market will see the first substantial influx of new issue volume this week after a holiday lull that was marked by few new bonds.

The municipal bond market capped a light year of issuance with a 6% drop in long-term volume in December.

Outflows from municipal bond mutual funds persisted for a 32nd straight week, at $1.47 billion.

Muni bond funds that report flows weekly recorded outflows of $1.49 billion for the week of Dec. 25, down from $1.71 in the week prior, Lipper FMI numbers showed.

Outflows, weak supply, rising interest rates, and mediocre returns are forecast for the municipal market as it rings in 2014 — in other words: more of the same.

Light issuance and the Federal Open Market Committee's decision to taper its bond-buying program drove the municipal market on the pre-holiday week.

Puerto Rico Gov. Alejandro García Padilla is proposing three measures to strengthen the commonwealth's and its municipalities’ finances.