Buy side

The recent rally in high-yield municipal bonds should continue, driven by a lack of supply, as investors reposition their portfolios, muni watchers say.

Current default trends and bankruptcy events indicate that the level of recoveries from troubled municipal bond debt may be substantially lower in the future, Kroll Bond Ratings Agency said in a report Monday.

Distressed credits from Puerto Rico continue to see active trading and price appreciation in the secondary market while activity is virtually at a standstill for bonds from bankrupt Detroit as the city wrestles with what is expected to be a long and complicated recovery.

Bel Air Investment Advisors, LLC has hired two municipal finance veterans to join its fixed income team in Los Angeles.

Bond sales by the University of California and New York City are likely to win a favorable reception in the coming week as the primary market rallies after the unexpected decision by the Federal Reserve Board to delay tapering its $85 billion-a-month economic stimulus program.

Moody's Investors Service has taken action on the long-term ratings of $1.7 billion in jointly supported letter of credit-backed municipal bonds.

American Airlines proposed merger with US Airways Group stands to impact all airports but several US Airways large hubs are most at risk for change, Wells Fargo Securities LLC says.

A rally in the municipal bond market this week couldn’t slow the stampede from muni bond mutual funds, which recorded outflows for a 17th consecutive week.

The municipal market faces more volatility after the Federal Reserve decided against reducing its stimulus efforts, as investors and other participants shift their attention to the looming fiscal debate, debt ceiling and the selection of a new Fed chairman.

Positive developments delay the date of tobacco securitization bond defaults but defaults are still likely, municipal bond analyst Richard Larkin warned.

The Bond Buyer's weekly yield indexes declined the week ended September 19.

A Financial Industry Regulatory Authority arbitration panel has ruled against The Police and Fire Retirement System of the City of Detroit, which was seeking at least $39.9 million from Citigroup Global Markets, Morgan Stanley Dean Witter and other firms over risky investments.

Outflows resumed for tax-exempt money market funds, which lost $619.5 million in the week ended Sept. 16, according to The Money Fund Report, a service of iMoneyNet.com.

The Please Touch Museum of Philadelphia defaulted on almost $59 million in bonds. The children's museum says it needs a workout.

Tradeweb Markets agreed to buy BondDesk Group LLC in a move that would combine two operators of alternative trading systems that serve the municipal bond market, among other fixed income marketplaces.

Less than half of state pension plans met Morningstar Inc.'s threshold for healthy status in 2012 with Wisconsin again ranking the strongest and Illinois the weakest.

Municipal bond pros are slashing their forecasts for long-term issuance this year, saying the industry is likely to shrink after climbing interest rates curtailed demand for refundings.

Warren Buffett's bond insurance firm Berkshire Hathaway Assurance Corp. made its first appearance in the Detroit bankruptcy as the city filed objections to creditors' requests.

With the FOMC meeting looming, municipalities have curtailed long-term bond issuance to just over $3 billion this week while they wait to see if the Fed tapers.

The municipal bond market rally failed to encourage investors, who pulled a net $1.90 billion from muni bond mutual funds for the week ending Sept. 11.