Buy side

The $1.8 billion Jefferson County, Ala. Sewer warrant deal raised eyebrows on Friday when it thundered into the market for the first day of its retail order period where yields on some of the subordinated debt were offered at close to 8%.

The tax-exempt market ended firmer for the week as investors put in more orders for bonds than were available on deals in the primary market. The secondary was firmer as the week progressed with dealers unloading balances from deals to customers at higher prices.

As Jefferson County, Ala., began to sell sewer warrants on Friday, analysts said they remained concerned about the rate increases needed to repay the debt.

Bill de Blasio's budget proposal about a month into his tenure could provide a window to investors anxious to see how New York's new mayor will handle finances.

The Puerto Rico Treasury is taking a variety of steps to crack down on tax evasion, including hiring 195 professionals to crack down on the practice.

The Bond Buyer's weekly yield indexes rose the week ended Nov. 14.

Investor demand for municipal bond mutual funds remained sluggish for a 25th straight week, with outflows of $903 million for the week of Nov. 13.

Fitch Ratings placed the BBB-minus rating of Puerto Rico's general obligation bonds on rating watch negative, citing in part concerns about market access.

The proposed merger of US Airways Group and American Airlines could be bad news for smaller airports as the combo unit gives up gates at major hubs, Moody's says.

The total net assets of tax-exempt money market funds declined by $1.32 billion to $263.26 billion in the week ended Nov. 11, as they gave up most of the prior week's gains.

Investors in municipal bonds are mostly pleased that hedge funds have increased their bets recently in distressed state and local government debt.

American Airlines and US Airways Group Inc. settled an antitrust lawsuit with the U.S. Department of Justice, clearing American's path to exit bankruptcy and repay its municipal bondholders.

Volume will slow this week due to the observance of Veteran's Day as deals from California and New Jersey head to a market that weakened after Friday's stronger-than-expected employment report.

Municipal bond mutual fund flows remained solidly in the red for a 24th straight week, with outflows of $738 million.

Municipal managers and strategists, still reeling from Detroit's bankruptcy, the surge in Puerto Rico yields, and a mid-year sell-off that was the worst in a quarter century, are getting their portfolios ready for the next expected hurdle as 2014 approaches — another spike in interest rates.

Tax-exempt money market funds gained the first inflows in four weeks as $1.80 billion arrived in the week ended Nov. 4 and total net assets settled at $264.58 billion, according to The Money Fund Report, a service of iMoneyNet.com.

Joseph J. Roberts, a director of institutional sales at M&T Securities Inc., has decided to step down at the end of 2013 following a 48-year career in the financial markets, mostly in the municipal bond industry.

Brownstone Investment Group, a fixed income investment firm, brought aboard former Morgan Stanley trader Matthew Martines as managing director to expand its municipal bond trading and electronic market-making units.

Tradeweb Markets completed the purchase of BondDesk and rolled out its rebranded retail group, called Tradeweb Direct.

Long-term municipal bond volume for October trailed 2012 issuance for the third straight month, much as it has throughout the year, falling 28% over the same period in 2012.