News and Information from Bond Buyer

ALABAMA

Day Indicator Last Report Forecast Tuesday Consumer Confidence Jan.: 79.1 Feb.: 80.3 Wednesday New Home Sales Dec.: 458,000 Jan.: 400,000 Thursday Durable Goods Dec.: +1.0% Jan.: -1.7% Thursday Durable Goods ex-trans Dec.: +0.6% Jan.: -0.3% Thursday Initial Jobless Claims 2/15: 336,000 2/22: 335,000 Thursday Continuing Claims 2/8: 2.981M 2/15: 2.980M Friday GDP Q3: +4.1% Q4: +2.5% Friday GDP Core PCE Q3: +1.4% Q4: +1.1% Friday GDP Final Sales Q3: +2.5% Q4: +2.6% Friday Chicago PMI Jan.: 59.6 Feb.: 57.0 Friday U. of Mich. Sentiment Jan.: 81.2 Feb.: 81.2 Friday U. of Mich. Current Jan.: 96.8 Feb.: 94.0 Friday U. of Mich. Expectations Jan.: 71.2 Feb.: 73.0 Friday Pending Home Sales Dec.: -8.7% Jan.: +2.0%

After almost a decade of shrinking business and muddied prospects, the bond insurance industry ended 2013 having tackled at least one major milestone: get penetration back on the upswing.

State and local government revenue growth and expectations for higher interest rates last year were the main contributors to a 12.1% decrease in note issuance, municipal managers and analysts said.

Housing and development were growth sectors in the 2013 bond market as others fell sharply in the second half of the year.

New issue supply in the municipal market was down during 2013, largely driven by a major slowdown in refunding deals during the second half of the year.

The municipal market will see a small boost in issuance next week even as total volume remains low.

Puerto Rico bond yields rallied Wednesday and Thursday, in a sign of hope for a successful bond sale next month.

Government

The bond insurers that wrap a chunk of Detroit's unsecured debt blasted the city's debt adjustment plan filed in bankruptcy court Friday, joining a chorus of criticisms from the municipal bond market.

Detroit filed a proposed plan of adjustment that lays out how the city hopes the bankruptcy court will treat its $18 billion of debt, including major cuts to bondholders.

Yields on tax-exempt municipal bonds were unchanged Friday, as an absence of new issue paper continued to plague the marketplace.

A citizens bond committee has recommended a $289 million bond proposal for Round Rock Independent School District in suburban Austin.

The Puerto Rico Supreme Court today largely upheld the Puerto Rico government's December reform of the judicial pension system.

Standard & Poor's Ratings Services said it lowered its underlying rating to A from A-plus on Edgar, Coles, & Clark Counties Community Unit School District No. 3 (Kansas), Ill.'s series 2009 general obligation school bonds.

Standard & Poor's Ratings Services said it raised its underlying rating and long-term rating on Cupertino Union School District, Calif.'s outstanding bonds to AA-plus from AA.

Municipal bond yields steadied Friday afternoon after rising earlier in the morning. Yields continued to remain low even after a week of softening in U.S. Treasuries.

The Port Authority of New York and New Jersey has approved 2014 capital and operating budgets.

Local and national transportation officials gathered in Los Angeles Thursday to sign a grant agreement directing $670 million in federal funds to a $1.4 billion project to connect light rail lines now 1.9 miles apart on the opposite ends of downtown Los Angeles.

The day after Lehman Brothers Holdings Inc. declared the largest bankruptcy in U.S. history in 2008, Federal Reserve officials remained unsure whether the financial crisis would do lasting damage to the U.S. economy.