Markets

Standard & Poor's has a stable outlook on the municipal solid waste sector.

Individual investors like the higher payouts they have seen in long-term muni bond mutual funds, and so have been pouring more money into them in 2012 than they have in years.

Bond insurer Syncora Guarantee Inc. sued to challenge California measures dissolving local redevelopment agencies, saying they jeopardize bond payments and impair bondholder and insurer rights.

Standard & Poor's downgrade of the United States government a year ago earlier this month has had a wide but shallow impact on municipal bonds.

JPMorgan wants California's Peralta Community College District to make good on a type of refinancing that may now be illegal, according to a complaint filed Monday.

Throughout 2012, high-yield muni funds have seen some of the best total returns among bond funds, with consistent inflows. Still, some industry watchers warn of large risks for the sector.

Investors poured into muni bond mutual funds at a rate not seen in five months.

Morgan Stanley analysts point to several factors that can lead to municipal bankruptcies.