Markets

While Build America Bonds have limited the supply of tax-exempt issuance, strong demand from retail investors is also playing a vital role in lowering issuers’ borrowing costs to historic lows.

Market gains and new money from investors continued to push municipal bond mutual funds’ assets to records last week.

Minnesota will lead a modest slate of new state and local government debt issuance this week as it comes to market with a competitive $865 million general obligation deal.

Tax-free money market funds suffered a big exodus of cash last week as investors continue to grow disgruntled with paltry yields.

Nuveen Investments announced plans Thursday to purchase First American Funds’ long-term asset business as part of a strategy to offer a more diverse suite of products to investors.

Money market funds are taking advantage of higher short-term interest rates the past few months to reclaim some of the management fees they have been waiving to avoid negative yields.

Nearly all The Bond Buyer’s weekly yield indexes declined this week, finishing off a mostly-firmer period with hints of ­weakness.

Buoyed by the strength of the long-term municipal market over the past 18 months, mutual fund assets have climbed to record levels, and portfolio managers have had little need to make major changes to their current investment strategies.

After scrambling to sew up $84 billion in budget holes for the new fiscal year, states already face as much as $149 billion in new shortfalls during the next three, according to a report Tuesday from the National Conference of State Legislatures.