News and Information from Bond Buyer

Government

Incoming Illinois Gov. Bruce Rauner last week released a memo accusing former governors of “fundamentally dishonest” budget practices that led to the state's current financial crisis.

The Internal Revenue Service has established a standardized voluntary closing agreement program for issuers whose 501(c)(3) bonds benefited organizations that had their tax-exempt statuses prospectively reinstated after being revoked due to the failure to file returns for three consecutive years.

Budget and bond experts praised former New York Gov. Mario Cuomo, who died Thursday, as tenacious, learned and witty.

The municipal bond market is gearing up for action the week of Jan. 5, with about $3.24 billion of new deals scheduled for sale. Meanwhile, munis started off the year on a strong note as traders said yields fell in thin action on Friday.

In a written ruling outlining his verbal affirmation of Detroit's bankruptcy exit plan, the federal bankruptcy judge overseeing the case warned that if Michigan does not act to assure that cities can pay their pensions, it may mean a repeat of the high-profile bankruptcy.

A lawsuit challenging the Securities and Exchange Commission's investment adviser pay-to-play rule is moving forward in a D.C. federal appeals court, with implications for muni market pay-to-play restrictions hanging in the balance.

Missouri's proposed $2 billion upgrade of I-70 could be funded by tolling the 200-mile link between Kansas City and St. Louis.

Municipal Market Advisors is now Municipal Market Analytics, the research and analysis firm announced Friday.

Does disclosure, however admirable, actually contribute to an issuer's bottom line? Analysts and investors answer yes.

Market participants forecast the regulatory agenda

Saying she "could imagine" a rate hike in the first half of this year, if the variables fall into place Federal Reserve Bank of Cleveland President Loretta Mester predicted Friday inflation would "gradually" move toward the Fed's 2% target.

This year will bring more municipal advisor and secondary market transparency regulation, while a newly Republican-controlled Senate could lead Congress to scrutinize and possibly ease existing laws and rules.

The municipal bond market started the year off on a strong, but slow note. Traders said prices of high-quality bonds were up in thin action on Friday.

Gov.-elect Tom Wolf talked up school funding during his campaign, but finding a solution may be difficult.

A modest decline in financial market stress was reported for the week ending Dec. 26, according to the St. Louis Fed Financial Stress Index (STLFSI), which measured negative 0.989, down from the previous week's revised value of negative 0.840.

The overall economy grew for the sixty-seventh straight time, while the manufacturing sector expanded for the nineteenth consecutive month, the Institute for Supply Management reported Friday.

Construction spending declined 0.3% in November, the Commerce Department said Friday, and is 2.4% above the November 2013 level.

Tuesday, January 6 Issuer St Description Amount