Markets

The Illinois Finance Authority board signed off on a $90 million financing package for Clare Oaks continuing care retirement community in suburban Chicago as part of a Chapter 11 reorganization plan submitted by bondholders.

This week, municipal bond funds saw their largest outflows since January 2011 and the fifth largest on record.

Municipal bond issuance is expected to increase to $458.0 billion in 2013, a 9% jump from the $420.3 billion of munis issued in 2012 through mid-December, according to the Securities Industry and Financial Markets Association's annual survey of dealer firms.

Chicago is exploring a second try at privatizing its Midway International Airport, Mayor Rahm Emanuel's administration announced Friday.

The tax-exempt market struggled throughout most of the week with yields jumping as dealers cleaned out inventory ahead of year-end and buyers were fed up with record-low yields.

As the market prepares to ring in 2013, municipal experts have mostly positive expectations for interest rates, credit quality, investor demand, and the viability of municipals' tax exemption in the New Year, mixed with some lingering apprehensions about the fiscal cliff and overseas turmoil.

Holders of bankrupt American Airlines' New York City airport debt are weighing a settlement offer that would pave the way for the carrier to assume its lease at John F. Kennedy International Airport.

Municipal experts say 2012 turned out to be a banner year for municipal bonds — as both demand and mutual fund inflows were strong and the market hit record levels.

A plan proposed by the National Institutes of Health could pressure United States universities, according to a report from Fitch Ratings.