Buy side

Outflows among tax-exempt money market funds erased the inflows they gained last week - and then some -- as $1.06 billion fled the industry and total net assets dipped to $266.89 billion in the week ended Aug. 26, according to The Money Fund Report, a service of iMoneyNet.com.

Municipal bond yields have jumped enough from historic lows they reached in November that investors are beginning to see some attractive ratios, creating opportunities for both buyers and holders of tax-exempt securities.

California and New York will share the new-issue spotlight in the long-term market this week, aiming to grab investors’ attention before the Labor Day hiatus and harness some of the demand which helped sell last week’s large deals.

The market for variable-rate demand obligations has improved this year and is primed for a turnaround, according to a research report Moody's Investors Service published Friday.

The tax-exempt market ended softer every session this week as selling pressure from municipal bond funds and illiquidity pushed bond prices lower.

Municipal bond mutual funds that report weekly had a $2.14 billion outflow in the week ended Aug. 21, according to Lipper FMI numbers, the 13th consecutive week of investor withdrawal and the biggest reduction this month.

The Bond Buyer’s weekly yield indexes continued to climb the week ended August 22.

Van Eck Global plans to start an exchange-traded fund consisting largely of Puerto Rico municipal securities, a move that may broaden demand for the commonwealth's debt as it re-enters the market for the first time since a new administration took office.

Inflows of $1.02 billion into tax-exempt money market funds boosted total net assets to $267.95 billion in the week ended Aug. 19, canceling out the previous week’s losses.

Backed by rating upgrades, Atlanta plans to price $328.7 million of water and wastewater revenue bonds Tuesday and plans to sell another $240 million next month.

U.S. Trust is selectively adding high-quality municipal bonds to its investment mix as part of a larger strategy to rebalance portfolios and position for year end.

Insured municipal bonds are outperforming general obligation debt as investors place more value on guarantees amid falling bond prices and default concerns sparked by Detroit’s bankruptcy.

The New Jersey Transportation Trust Fund Authority will test the primary market this week with an $850 million long-term financing, part of an increasing slate of new offerings.

The federal government's attempt to block bankrupt American Airlines' merger with US Airways Group Inc. could have a "marginally positive" impact on U.S. airports, Fitch Ratings said in a report.

The judge overseeing American Airlines' bankruptcy put confirmation of the carrier's restructuring plan on hold after the federal government moved to block its merger with US Airways Group.

The Bond Buyer's weekly yield indexes increased the week ended August 15 amid gains in the Treasury market.

As the municipal market continues its struggles at the long end of the yield curve, investor demand remains tepid, as muni bond mutual funds that report flows weekly recorded outflows of $1.21 billion.

Academy Securities, an investment bank founded by military veterans to employ veterans in finance, brought in an inaugural class of summer interns who are both college students and veterans of the wars in Iraq and Afghanistan.

Tax-exempt money market funds had $1.02 billion in outflows, cutting total net assets to $266.94 billion for the week ended Aug. 12, as losses resumed after the biggest inflow in more than a year the previous week.

Sales of municipal bonds in the Far West region grew by almost 11% during the first half of 2013 compared to a year earlier as low rates continued to drive volume.