Markets

Monoline insurers that have hit rock bottom are positioned for a rebound that could see them wrapping up to 30% of new issue supply in some ratings groups, Citigroup Global Markets said.

Muni bond mutual fund outflows have fallen from recent levels, but remain heavy, at $974 million.

Low interest rates and investor skepticism continue to hold financial guarantors down, even as insurers introduced new and evolving business models to rejuvenate the market.

Municipal bond issuance fell 10% in the first half of 2013 after a surge in interest rates in May and June overwhelmed demand for refunding and other factors that analysts had expected to propel long-term volume for the year.

The Bond Buyer's weekly yield indexes increased the week ended August 8 amid gains in the Treasury market.

Tax-exempt money market funds recorded their biggest inflow in more than a year as total net assets soared by $3.84 billion to $267.96 billion in the week ended Aug. 5

The steepest yield curve in more than a year has created value for tax exempt investors, some advisors say.

The municipal bond market endured the second heaviest outflows of the year from muni bond funds this past week, at $2.24 billion.

Assured Guaranty's Municipal Assurance Corp., the company's muni-only bond insurance business launched last month, wrapped its first deal.