Markets

Cash is flooding into municipal bond mutual funds at a record pace as investors become more comfortable taking risk and spiriting money out of safe havens.

The National Federation of Municipal Analysts presented awards to four individuals, including Tom Weyl from Eaton Vance Management and J. Ben Watkins 3d, Florida's bond division director, as well as a law firm, during its annual conference in Seattle earlier this month.

Tax-exempt money market funds took a step into positive territory for the week ending May 11 as they gained $742.9 million to settle at $468.67 billion, according to the Money Fund Report, a service of iMoneyNet.com.

With Build America Bonds at the forefront of the municipal market, Fitch Ratings is concentrating on the treatment of the federal subsidy and bond structure as two key credit considerations in its ongoing analysis of the taxable debt, according to a report being released today.

Nearly all The Bond Buyer’s yield indexes declined this week, as tax-exempts were unchanged to firmer in all the week’s sessions.

Municipal bond mutual funds attracted another giant slug of cash from investors last week as the industry remained a magnet for retail investor interest.

Investors hungry for more taxable Build America Bonds will have another crack at a relatively sizable offering this week when the Illinois State Toll Highway Authority issues up to $500 million of senior-priority revenue bonds amid an estimated slate of $5.6 billion of total new-issue volume, according to Ipreo LLC and The Bond Buyer.

The municipal market perked up this week, leaving The Bond Buyer’s yield indexes mostly lower. This comes after a period of lackluster trading that had settled in after a mid-April rally.

Tax-exempt money market funds remained in negative territory again this week as total assets declined by $646.9 million to $467.92 billion for the week ending May 4, according to the Money Fund Report, a service of iMoneyNet.com

For investors worried the U.S. Treasury might revoke its promised subsidies to Build America Bonds, Ann-Ellen Hornidge offers some free legal advice: relax.