Buy side

Zero-coupon bonds: exceptional value or chronic underperformance? Opinions vary, but there's no mistaking that there's a lot of activity in zeros lately as investors look to them for yield.

The Bond Buyer's weekly yield indexes increased the week ended March 7.

For the first time in nine weeks, muni bond funds that report flows weekly recorded outflows for the week of March 6, at $97 million.

Flows into tax-exempt money market funds were positive by $17 million in the week ended March 4 as total net assets only increased to $278.79 billion, according to The Money Fund Report, a service of iMoneyNet.com.

The taxable municipal bond market is attracting buyers as the tax-exempt municipal bond market and other taxable asset classes look expensive.

The New York Supreme Court dismissed the lawsuit brought by various financial institutions against MBIA Inc. over its 2009 split into two companies.

A nearly $700 million Maryland general obligation sale will headline the primary market this week -- despite facing potential spending constraints -- and will be among several other Northeast issuers that will dominate the new-issue calendar following strong activity last Friday.

Standard & Poor's downgraded bond insurer National Public Finance Guarantee three notches to BB from BBB Thursday evening.

Michigan Gov. Rick Snyder's historic decision Friday to take over the city of Detroit bodes well for the credit and for other local distressed governments, muni experts said, even as Snyder warned that all creditors might take have to take a loss.

The tax-exempt market ended February on a high note with a rally across the curve.

Although negative, the effects of sequestration on state and local governments will be gradual and issuers are mostly prepared, according to Fitch Ratings, Moody's Investors Service and Standard & Poor's.

The Bond Buyer's weekly yield indexes were mixed the week ended Feb. 28.

Inflows to municipal bond mutual funds ticked up this week to $324 million, making it eight consecutive weeks in the red.

Long-term municipal bond issuance hit the brakes in February, as issuers floated 22% less in volume last month than they did over the same period in 2012.

Tax-exempt money market funds saw modest inflows as they reversed the recent outflow pattern.

Assured Guaranty Ltd. reported quarterly profits and announced that it plans to begin writing policies with its new municipal-only insurer, Municipal Assurance Corp., later this year.

With low interest rates, stagnant supply, and anticipated regulations, the market for variable rate demand obligations is in decline.

Scales tracking the municipal market may forecast lower yields across most of the spectrum of the curve Tuesday, but the scene for retail investors is a quiet one.

Moody's Investors Service has placed $354 million of outstanding debt from 40 issuers on review, direction uncertain, due to lack of information.

The long-term care credit market has stabilized, writes Jon Barasch of Interactive Data Corp. in this commentary.