News and Information from Bond Buyer

The municipal bond market ended mostly stronger on Friday after two straight days of losses, as dealers unloaded inventory left over from the primary deals at higher prices to customers.

Government

The new position on political subdivisions that the Internal Revenue Service has taken in a bond-related tax dispute with a community development district in Florida has had a "chilling effect" on the issuance of such bonds and has hurt existing bond issues, bond lawyers are warning.

U.S. Bankruptcy Attorney Thomas Bennett issued a 79-page Friday confirming his verbal approval of Jefferson County, Ala.'s Chapter 9 exit plan.

California is benefiting from an economic rebound, but it must contain spending levels in order to continue its progress, according to a recent report from Fitch Ratings.

Richard Ciccarone — a prominent voice for buyside municipal research — will retire from his post as chief research officer at McDonnell Investment Management LLC to devote more time to expand his Merritt Research database and -he hopes — to carve out more leisure time in his day.

Puerto Rico's October revenues were revised upward on Thursday.

Tax-exempt bonds in the secondary market traded with firm levels on Friday as traders said high-grade bonds saw demand from buyers.

New custody related relationships with State Street Bank, Russell Investments and Citibank are expected to generate increased revenue of about $21 million per year for the New York City pension funds, primarily through securities lending, city Comptroller John Liu said, The Bond Buyer reports.

The municipal bond market headed lower for the third straight week as yields rose on new supply flooding the market, a 26th consecutive outflow from bond funds, and a softer Treasury market.

Congressional committee leaders have sent a letter to Attorney General Eric Holder expressing concerns that the proposed settlement agreement with US Airways and American Airlines might hurt less populated and rural areas.

Moody's Investors Service has downgraded the rating on the Port of Seattle's intermediate and subordinate revenue bonds ahead of its $140 million refunding deal.

The National Association of Independent Public Finance Advisors has sent an open letter to Securities and Exchange Commission chairman Mary Jo White insisting the municipal advisor rule the SEC adopted in September will not restrict the flow of information between issuers and other parties to a bond deal.

An Indiana legislative panel Thursday approved a transit proposal for central Indiana that would rely on new local taxes for financing.

New relationships with banking firms are expected to generate an additional $21 million per year for the New York City pension funds, Comptroller John Liu said.

Without a labor contract extension, Boeing could pursue out-of-state production locations, which would be a credit negative for Washington State and the Puget Sound region, Moody's Investors Service said.

The specter of another top taxpayer leaving Woonsocket, R.I., could be a credit negative for the city, said Moody's Investors Service.

Standard & Poor's upped Baton Rouge, La.'s sales tax revenue bonds to triple-A noting the city's role as an economic center and improving debt service coverage.

The pension costs burden for America’s largest cities is less than the perception presented in media reports, a new study indicates.

Potential volume for next week is $538.2 million, down from total sales of $6,195.8 million this week.