Markets

Issuing municipal bonds is a complex process fraught with potential conflicts, Chris Mier, managing director of the analytical services division for Loop Capital Markets, told bond issuers here Wednesday.

The recent rally in high-yield municipal bonds should continue, driven by a lack of supply, as investors reposition their portfolios, muni watchers say.

Current default trends and bankruptcy events indicate that the level of recoveries from troubled municipal bond debt may be substantially lower in the future, Kroll Bond Ratings Agency said in a report Monday.

Distressed credits from Puerto Rico continue to see active trading and price appreciation in the secondary market while activity is virtually at a standstill for bonds from bankrupt Detroit as the city wrestles with what is expected to be a long and complicated recovery.

Bel Air Investment Advisors, LLC has hired two municipal finance veterans to join its fixed income team in Los Angeles.

Bond sales by the University of California and New York City are likely to win a favorable reception in the coming week as the primary market rallies after the unexpected decision by the Federal Reserve Board to delay tapering its $85 billion-a-month economic stimulus program.

Moody's Investors Service has taken action on the long-term ratings of $1.7 billion in jointly supported letter of credit-backed municipal bonds.

American Airlines proposed merger with US Airways Group stands to impact all airports but several US Airways large hubs are most at risk for change, Wells Fargo Securities LLC says.

A rally in the municipal bond market this week couldn’t slow the stampede from muni bond mutual funds, which recorded outflows for a 17th consecutive week.

The municipal market faces more volatility after the Federal Reserve decided against reducing its stimulus efforts, as investors and other participants shift their attention to the looming fiscal debate, debt ceiling and the selection of a new Fed chairman.