Buy side

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.

The credit ratings of 15 California transit agencies are on review for downgrade by Moody's Investors Service because the Obama administration is challenging changes to state pension law.

With the recent increase in interest rates, the de minimis risk grows for municipal bond investors.

John Donaldson, director of fixed income at Haverford Trust, favors high-quality bonds with strong claims-paying ability and widespread credit diversification in the intermediate slope of the curve.

Fitch Ratings stripped Wayne County, Michigan's general obligation ratings of their investment grade over the county's rapidly deteriorating fiscal condition, in a five-notch superdowngrade.

The Justice Department and attorneys general from six states and the District of Columbia moved to block bankrupt American Airlines' proposed merger with US Airways under federal antitrust laws.

The Michigan Finance Authority will sell $92 million of state aid revenue notes for the Detroit Public School District next week in the first market offering to carry the Detroit name since the city's bankruptcy filing.

Lebenthal & Co., LLC, next month will introduce MuniAxis to improve liquidity for trading odd-lot municipal bonds in the secondary market.

On the heels of a mostly steady to stronger tone and brisk demand for deals last week, the municipal market is anticipating the arrival of a $5.5 billion California revenue anticipation note deal this week as well as more than $4 billion in new long-term paper -- all of which should see strong demand, municipal experts said.

Monoline insurers that have hit rock bottom are positioned for a rebound that could see them wrapping up to 30% of new issue supply in some ratings groups, Citigroup Global Markets said.

Muni bond mutual fund outflows have fallen from recent levels, but remain heavy, at $974 million.