Buy side

The municipal market earned a day of rest after its torrid week of buying and record-setting yields. While the bond markets are closed for Veterans Day, industry watchers are optimistic about investor demand and the overall state of the market.

The municipal market, glad to mark the end to election-related uncertainty and hurricane-generated disruption, still has yet to reach seasonal average volumes. This week's calendar should total $7.61 billion.

The MSRB, to boost trade transparency, announced that the par amount of trades of less than $5 million will now be posted on the EMMA system in real time.

Municipal bonds scheduled for negotiated sale next week (Nov. 12-16, 2012) are estimated at $6,628.0 million, up from $3,686.9 million sold this week (Nov. 5-9, 2012).

Bond insurer's Assured Guaranty Ltd.'s operating income improved in the third quarter of 2012 to $166 million from $38 million in the third quarter of 2011.

Municipal bond mutual funds saw heavy inflows, rebounding with authority from their first week of outflows in more than six months.Those funds that report their flows weekly recorded inflows of $866 million for the week ended Nov. 7.

After a storm of unusually high outflows last week, investors who weathered the storm in the Northeast returned to money market funds with cash this week.

Results from the U.S. elections on Wednesday provided a record-breaking boost to a municipal market still recovering from last week's hurricane.

In a move to increase its public finance business, bond insurer Assured Guaranty has hired three senior professionals.

The re-election of President Obama is a credit neutral event for non-profit hospitals, but looming changes in the federal landscape tied to the new health care law and budget deficit, present challenges, Moody's Investors Service said in a report Wednesday.

Hawaii Finance Director Kalbert Young is concerned that other bond sales rescheduled after Hurricane Sandy could impact the Aloha State's $900 million sale planned for next week.

Peter M. Demirali, 52, of Mendham, N.J., a managing director at Cumberland Advisors, died suddenly on October 30, and a memorial service is planned for Nov. 17 at 11 a.m. in Queens, N.Y.

Bond insurer parent company MBIA Inc. had an adjusted pre-tax loss of $118 million in the third quarter of 2012.

Overwhelming uncertainty surrounding the U.S. elections stands as the most likely cause industry watchers cite behind the first outflows municipal bond mutual funds reported in more than six months.

New York's MTA, restoring its subway and commuter rail systems after Hurricane Sandy's damage, will continue its flurry of bond activity this week.

More than 40% of states have poor pension funding ratios, Morningstar municipal credit researcher Rachel Barkley said.

Municipal bond volume saw a slight bump for the month of October, continuing what has been an upward path for the issuance of new muni debt in 2012. Long-term muni bond issuance last month rose 3%, and has increased 39% for the year to date.

Issuance in the municipal bond market should make a resounding return to pre-storm levels this week. Volume should total an estimated $7.06 billion, up from a hurricane-pared $1.66 billion last week.

The Bond Buyer queried some municipal market experts asking them their top concerns for the market depending on the outcome of the 2012 Presidential election. The fate of the municipal tax exemption was a major concern.

After 28 straight weeks of inflows to muni bond funds, the market saw outflow for the week ended Oct. 31. Funds that report their flows weekly recorded outflows of $123 million for the week ended Oct. 31, Lipper FMI numbers show.