Markets

The credit quality for most municipal issuers who were affected by Hurricane Sandy is likely to remain unchanged, despite late debt service payments by four of them, according to a new report by Moody's Investors Service.

Moody's Investors Service says that the higher education sector was recently blessed with a credit positive but that the sector will experience mixed credit conditions in the next few years.

Municipals marked a day of rest following a torrid week of buying and record-setting yields as the bond markets closed for Veterans Day. Industry watchers said they were optimistic about investor demand and the overall state of the market.

The municipal market earned a day of rest after its torrid week of buying and record-setting yields. While the bond markets are closed for Veterans Day, industry watchers are optimistic about investor demand and the overall state of the market.

The municipal market, glad to mark the end to election-related uncertainty and hurricane-generated disruption, still has yet to reach seasonal average volumes. This week's calendar should total $7.61 billion.

The MSRB, to boost trade transparency, announced that the par amount of trades of less than $5 million will now be posted on the EMMA system in real time.

Municipal bonds scheduled for negotiated sale next week (Nov. 12-16, 2012) are estimated at $6,628.0 million, up from $3,686.9 million sold this week (Nov. 5-9, 2012).

Bond insurer's Assured Guaranty Ltd.'s operating income improved in the third quarter of 2012 to $166 million from $38 million in the third quarter of 2011.

Municipal bond mutual funds saw heavy inflows, rebounding with authority from their first week of outflows in more than six months.Those funds that report their flows weekly recorded inflows of $866 million for the week ended Nov. 7.

After a storm of unusually high outflows last week, investors who weathered the storm in the Northeast returned to money market funds with cash this week.