Markets

A New York court has ruled that bond insurer ACA must pay claims on defaulted bonds that it insured.

Municipal bond analysts are in demand. With triple-A yields diving into record low territory, fund managers are being forced to look harder to find yield.

The financial health of state housing finance agencies is mixed, Fitch Ratings reported Tuesday.

Long-term municipal bond issuance for 2012 continues to outpace that of the previous year. But the once-yawning gap year-over-year has narrowed. Issuers floated just 7% more in total volume last month than they did in July 2011. That amounted to $26.6 billion on 836 issues in July 2012, against $24.9 billion on 757 deals over the same period last year.

The Triboro Bridge and Tunnel Authority of New York should bring a hefty deal to the municipal marketplace this week. Municipal market volume should climb this week, albeit barely, and from modest levels.

Moody's Investors Service raised its rating one notch to A2 on $160 million of Alexian Brothers Health System's still outstanding after its acquisition by Ascension Health Alliance.

Standard & Poor's and Moody's Investors Service have mixed outlooks on the higher education sector.

Puerto Rico's debt load, exceeding $60 billion, and pension liabilities are a challenge to the island's fiscal ability and investors should limit their exposure, cautions Alan Schankel of Janney Capital Markets.

The municipal market continues to gain from an extended rally that has boosted fixed income securities. Investors have embraced bonds as they see volatile equities and want security, if not yield.