Buy side

In a bid to boost its sagging economy, Puerto Rico is contemplating its biggest tax overhaul in decades.

The fall meeting of the Municipal CFO Forum slated for Thursday and Friday in Chicago will focus on "financial communications."

A renewed interest in subdivisions that stalled during the recession is likely the main reason the California Debt and Investment Advisory Commission reported doubling of refunding volume in land-secured Mello-Roos bonds from fiscal year 2011-12 to 2012-13, according to government consultant Larry Kosmont.

While taxable century bond deals have recently gained in popularity among select issuers, they are less likely to become a household name in the municipal market due to their longer-than-usual lifespan and limited liquidity in the secondary market, muni experts said.

After a two-week climb, volume in the primary market may dip below $6 billion this week as a general obligation offering from Hawaii will lead the limited trading activity.

The $37 billion of bonds approved by the nation's voters Nov. 4 included 13 of the 15 largest initiatives but fell far short of the record $69.6 billion approved in 2006.

Municipal bond fund inflows rose after declining for three straight weeks.

The weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, rose three basis points the week ending Nov. 6 to 4.38%.

Warnings of a "death spiral" for regulated electric utilities caused by distributed generation such as rooftop solar panels are premature, according to Moody's Investors Service.

Despite the recent numbers, municipal experts said demand continues to be heavy for municipal bonds – both for direct ownership and through mutual funds.

The new-issue activity this week will be led by a $700 million New York City Transitional Finance Authority sale of future tax secured bonds and a $500 million North Texas Tollway Authority sale of first and second tier bonds.

October's volume of $34 billion came in 17.7% higher than a year earlier, the third month in a row issuance was greater than at the same time in 2013, according to Thomson Reuters data.

Puerto Rico plans to help its Highways and Transportation Authority through an oil tax increase and the sale of bonds from a new authority.

The weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell two basis points in the week ending Oct. 30 to 4.35%.

Michigan's decade-long policy of repeatedly cutting local aid to help deal with its own fiscal problems has helped drive some of its local governments into fiscal crisis, the Chicago Fed says in a new report.

Toll roads across the nation can expect to see higher volumes of traffic as lower fuel prices encourages more driving, according to Moody's Investors Service.

A $1.6 billion Liberty Development Corporation nonrated financing for the 3 World Trade Center Tower project will thunder into the primary market this week, giving investors a rare opportunity to grab triple-exempt, high-yield bonds from a large specialty state, municipal sources said.

Inflows for all municipal bond funds declined by 90.8% as investors pulled money out of long term and high yield funds.

Connecticut will become the latest state to issue green bonds, state Treasurer Denise Nappier announced Wednesday.

Orrick Herrington & Sutcliffe LLP and Hawkins Delafield & Wood LLP maintained their positions atop bond counsel rankings as muni volume sank in the first nine months of the year, while former No. 3 Squire Patton Boggs, fell out of the top 10.