Buy side

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.

The municipal market may stabilize in the coming week, helped by a calendar that is moderate in size, diverse in composition and rich in familiar and attractive names, market watchers say.

Bold headlines from Detroit's bankruptcy filing and Chicago's downgrade provided strong drivers for the ninth straight week of outflows from municipal bond mutual funds, at $1.23 billion.

The Bond Buyer's weekly yield indexes increased the week ended July 25.

Investor demand for tax-exempt money market funds withered, as the industry registered another $475.3 million in outflows.

Many large managers of municipal bond funds with Detroit paper said they haven't heard any panic from their investing clients since the city filed for bankruptcy and many of their funds have lost value.

Volume in the new-issue market this week will slow to $5.54 billion, down from the robust pace of last week when municipals weakened under heavy supply.

Detroit bankruptcy, substantial outflows, heavy calendar, Ben Bernanke, economic indicators -- the municipal market had a wealth of drivers vying for influence on yields this week.

The municipal market started Friday unaffected by Detroit's Chapter 9 bankruptcy filing Thursday afternoon, the biggest in history.

Heavy outflows, at $1.56 billion, endure for municipal bond mutual funds as investor demand for tax-exempts continues to flag.

The Bond Buyer's weekly yield indexes were narrowly mixed the week ended July 18.