Buy side

A takeover of bankrupt American Airlines by US Airways could bruise some airport credits, with the risks most acute for their hub facilities, Moody's Investors Service warned in a special commentary released Wednesday.

Analysts see various scenarios playing out for the U.S. municipal bond market should Greece exit the euro currency and default on its remaining debt.

WASHINGTON — States slowed their borrowing dramatically, with a growth of only 2.5% in 2011, despite low interest rates, according to a new Moody’s Investors Service report.

Volume in the municipal market is bulking up this week. The industry expects $9.19 billion to reach the primary, compared with $6.83 billion that arrived last week. And it should meet a degree of demand largely unscathed from last week’s slight backup.

The hunger for paper and search for yield in the municipal market reached their limits this week.

Some retail investors are being more cautious when shopping for tax-exempt bonds in Pennsylvania, but overall, that hasn't decreased the volume of trading in the state, according to local traders and underwriters.

Municipal bond mutual funds again posted solid inflows in a week of modest new issuance that saw a backup in yields.

The first inflows into tax-exempt money market funds in nearly a month were gone almost as quickly as they arrived when $2.17 billion exited in the week ended May 14, eroding much of last week’s gains, according to the Money Fund Report, a service of iMoneyNet.com.

Individual investors have been flocking to municipal bond funds, searching for safety and relatively high yields.

Retail investors continue to rank credit quality high at the top of their list of criteria when shopping for municipal securities, whether they be individual bonds or tax-exempt bond funds.

Standard & Poor's has released a credit conditions forecast that is more positive for states than for localities.

Municipal bond issuance is expected to tick up this week, although it still remains at relatively low levels.

WASHINGTON — Securities and Exchange Commission chairman Mary Schapiro wants to move forward with regulations aimed at improving the stability of money-market funds, despite strong opposition from industry and state and local government groups.

Sturdy demand for tax-exempt paper and falling Treasuries pushed municipal yields in the intermediate and long ends of the curve lower throughout much of the week.

Municipal bond mutual funds saw a huge week of inflows, as investors continue to see strength in the market.

Tax-exempt money market funds generated inflows for the first time in nearly a month, as $2.84 billion of new cash flowed in and total net assets settled at $274.96 billion in the week ended May 7, according to the Money Fund Report, a service of iMoneyNet.com.

Record-low long-term municipal bond yields may generate the most press these days, but investors still see the most value in the intermediate part of the yield curve.

In a sign of continued financial stress, state and local governments again cut employment in April.

The industry needs a shake-up, Jules Kroll said. And he's trying to provide one, founding the Kroll Bond Rating Agency Inc. in 2010 with help from his son, Jeremy.

Volume for the municipal market continues to tick down while investor demand for tax-exempt paper remains robust.