Markets

Investors in municipal bonds are mostly pleased that hedge funds have increased their bets recently in distressed state and local government debt.

American Airlines and US Airways Group Inc. settled an antitrust lawsuit with the U.S. Department of Justice, clearing American's path to exit bankruptcy and repay its municipal bondholders.

Volume will slow this week due to the observance of Veteran's Day as deals from California and New Jersey head to a market that weakened after Friday's stronger-than-expected employment report.

Municipal bond mutual fund flows remained solidly in the red for a 24th straight week, with outflows of $738 million.

Municipal managers and strategists, still reeling from Detroit's bankruptcy, the surge in Puerto Rico yields, and a mid-year sell-off that was the worst in a quarter century, are getting their portfolios ready for the next expected hurdle as 2014 approaches — another spike in interest rates.

Tax-exempt money market funds gained the first inflows in four weeks as $1.80 billion arrived in the week ended Nov. 4 and total net assets settled at $264.58 billion, according to The Money Fund Report, a service of iMoneyNet.com.

Joseph J. Roberts, a director of institutional sales at M&T Securities Inc., has decided to step down at the end of 2013 following a 48-year career in the financial markets, mostly in the municipal bond industry.

Brownstone Investment Group, a fixed income investment firm, brought aboard former Morgan Stanley trader Matthew Martines as managing director to expand its municipal bond trading and electronic market-making units.

Tradeweb Markets completed the purchase of BondDesk and rolled out its rebranded retail group, called Tradeweb Direct.

Long-term municipal bond volume for October trailed 2012 issuance for the third straight month, much as it has throughout the year, falling 28% over the same period in 2012.