Municipal Credit Quality Stabilizes

The selloff in munis this week is "against a backdrop of historic bid wanted in competition volume, continued rate volatility, tax-loss selling [and] unfavorable technicals," said J.P. Morgan strategists.

"We believe strongly in these sectors, and they are poised for even more growth," Bo Daniels, Loop Capital's head of public finance, said in a statement.

The deal, set to close in the coming weeks, adds a group of capital markets and other market professionals, according to a press release.

Final disclosure standards, still years away, will likely be tailored to the municipal bond market.

A cutback in federal funding for state revolving loans to water utilities is among the things pressuring water utilities in Florida.

The outlook revision to positive from stable is the second this year for the state after Moody's Ratings took similar action in May.