Markets

Budget balances for states remain too low relative to annual expenditures, according to the National Governors Association and National Association of Budget Officers.

Law firms interested in working on future state of Wisconsin bond sales have until August 6 to submit their qualifications for review.

Morningstar entered the analyst research sector for public finance Monday as it unveiled its fundamental municipal research offering. The research will focus on 100 municipal issuers and reports for about one million muni bonds.

A regulator will allow bond insurer MBIA Inc. to make a payment on surplus notes issued in 2008, the company said.

The outlook for bond-financed transportation infrastructure remains stable, but could possibly see a downturn if the slow economic recovery loses momentum or if banks are downgraded. according to a new mid-year report from Fitch Ratings.

Large issues from Illinois and New York lead the new-issuance charge in the municipal market this week. Total potential volume is expected to climb to $8.14 billion this week.

Municipal market participants are praising rules finalized by the Commodity Futures Trading Commission that except most state and local governments from having to clear interest rate swaps through a derivatives clearing organization.

The municipal market has been fairly energized this week by the simple economics of supply and demand.