Buy side

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.

Low interest rates and investor skepticism continue to hold financial guarantors down, even as insurers introduced new and evolving business models to rejuvenate the market.

Municipal bond issuance fell 10% in the first half of 2013 after a surge in interest rates in May and June overwhelmed demand for refunding and other factors that analysts had expected to propel long-term volume for the year.

The Bond Buyer's weekly yield indexes increased the week ended August 8 amid gains in the Treasury market.

Tax-exempt money market funds recorded their biggest inflow in more than a year as total net assets soared by $3.84 billion to $267.96 billion in the week ended Aug. 5

The steepest yield curve in more than a year has created value for tax exempt investors, some advisors say.

The municipal bond market endured the second heaviest outflows of the year from muni bond funds this past week, at $2.24 billion.

Assured Guaranty's Municipal Assurance Corp., the company's muni-only bond insurance business launched last month, wrapped its first deal.

The Bond Buyer's weekly yield indexes increased the week ended August 1.

Long-term municipal bond volume fell 13% in July, as rising interest rates and headline scares generated by Detroit's record bankruptcy filing and Chicago's downgrade drove investors from the market.

Municipal bond mutual fund exposure to the city of Detroit is not as heavy as initially projected, new analysis by an investment research firm shows.