Buy side

Moody's Investors Service placed tobacco settlement revenue bonds of issuers in 17 states and two territories under review with direction uncertain because of legal settlement announced in December. The action affects $20.5 billion of debt.

An estimated $9.19 billion is expected to be priced in the municipal primary market, compared with a revised $5.89 billion last week, as billion-dollar-plus deals from Ohio and New Jersey head the negotiated slate.

Illinois will take competitive bids on $500 million of GOs later this month in its first borrowing of the New Year and first test of market reaction to the General Assembly's failure to overhaul pensions.

Standard & Poor's revised its growth forecast for 2013 on state and local governments to be slightly higher and Fitch Ratings gave most sectors a stable outlook for the year.

Municipal bond mutual funds recorded a second consecutive week of strong flows, as funds that report their flows weekly saw $1.44 billion in inflows for the week of Jan. 16

Municipal bond mutual funds saw $43 billion in inflows in 2012, a huge increase over flow numbers from the previous two years.

Tax-exempt money market funds gave up two-thirds of the impressive gains they generated last week.

New York public health system Nassau Health Care Corp. captured an interest rate of 0.4% and saw broad investor interest Tuesday when it sold $40 million of insured revenue anticipation notes backed by future Medicaid payments.

The Austin City Council is expected to approve up to $150 million of taxable revenue bonds Thursday to build a new consolidated car rental facility and parking garage at Austin Bergstrom International Airport.

Bond insurer MBIA Inc. announced that the New York State Department of Financial Services denied a request by MBIA Insurance Corp. to make its interest payment scheduled for Tuesday.

As new-issue volume begins to build a little more momentum than last week, a two-pronged negotiated deal from the Arizona Transportation Board totaling $706.2 million will headline the activity, which includes an estimated $5.62 billion in primary issuance, according to Ipreo LLC and The Bond Buyer.

More municipal bond investors have shown an affinity for actively managed muni ETFs.

Eaton Vance wants to be an industry leader in non-transparent actively managed muni exchange-traded funds.

Inflows returned to the market for municipal bond mutual funds with a vengeance, at $1.55 billion for the week ended Jan. 9.

The Bond Buyer weekly yield indexes declined the week ended Jan. 10.

West Penn Allegheny Health System, bondholders and Highmark are continuing talks about a $475 million affiliation agreement, with West Penn possibly avoiding bankruptcy.

Net Inflows among tax-exempt money market funds were $6.18 billion in the week ended Jan. 7, according to The Money Fund Report, a service of iMoneyNet.com.

Investors who hold some of the $4.5 billion of revenue bonds issued for the controversial Prairie State Energy Project can take heart that the project's long-term economics remain favorable for participating public power agencies despite cost overruns, says Moody's Investors Service.

Build America Mutual says it is now offering secondary market insurance, and has hired Hans Hanf to lead the secondary market desk.

The United States not-for-profit sector outlook is stable for 2013, but less favorable than past years, according to Standard & Poor's.