Markets

Memphis-based, fixed-income broker-deal Carty & Co. has expanded its new public finance division into Alabama, with an eye toward other states in the Southeast.

Many market participants may be on vacation, but there's still interest in municipal bond mutual funds. Flows to muni bond funds rose on the week, keeping their hot streak alive.

The municipal market may have been in holiday mode this week, but there has been noticeable activity by institutions in the secondary, traders reported. The week's light issuance in the primary market was well received, as demand remained robust for tax-exempts.

BondDesk Group LLC has appointed former UBS head of municipal trading John Bagley as president and senior managing director of BondDesk Trading.

Tax-exempt money market funds saw the return of significant losses this week -- despite gaining some modest inflows last week -- as $2.45 billion fled the funds and total net assets settled at $270.01 billion in the week ended Aug. 27, according to The Money Fund Report, a service of iMoneyNet.com.

Credit spreads on Puerto Rico's general obligation bonds have widened by as much as 70 basis points from the beginning of the year, while similarly rated bonds have seen spreads narrowing.

Demand for municipal bonds remains robust heading into the Labor Day holiday weekend even if expected issuance does not. Industry estimates hold that municipal bonds to be sold next week should total a paltry $1.55 billion, versus a revised $6.38 billion last week.

Tax-exempt money market funds grew by $124.80 million — a slight improvement from the prior week — as total net assets settled at $272.46 billion in the week ended Aug. 20, according to The Money Fund Report.