Buy side

On the heels of a fairly lackluster February, a trio of super-sized deals will kick off March in the Texas, California, and Puerto Rico markets. An estimated $10.16 billion is expected to be priced into a relatively weak municipal market clouded by failed auction-rate transactions and the problems still facing bond insurers as a result the general contraction in liquidity.

Weekly reporting municipal bond mutual funds had a net inflow of $170 million during the period ending Feb. 27, AMG Data Services reported.

Prompted by uncertainty and volatility in the municipal market, Van Eck Global Securities last week rolled out a short-term municipal exchange-traded fund in hopes of targeting investors that are seeking shelter by staying defensive amid the recent turmoil.

Continued weakness has permeated through the municipal market over the past two weeks, leading to the second prolonged disengagement of tax-exempts from the Treasury market in the past seven months - and a dramatic rise of The Bond Buyer's weekly yield indexes.

For the second week in a row, tax-exempt money market funds suffered outflows for the week ending Feb. 25, according the Money Fund Report, a service of imoneynet.com.

The few minor legislative tax changes that occurred in several states in 2007 were kind to taxpayers both large and small.

Weekly reporting municipal bond mutual funds had a net inflow of $182 million during the period ending Feb. 20, AMG Data Services reported.

Vanguard Group has reshuffled the management at the top of two tax-exempt bond funds, reassigning responsibilities over the limited-term tax-exempt fund and the insured long-term tax-exempt fund.

Maryland’s $400 million general obligation sale to finance various state and local construction projects leads a small flurry of new-issue activity in the Northeast and is the largest deal in an otherwise fairly lackluster new-issue market. This week’s volume is expected to be $4.33 billion, up from a revised $2.76 billion last week,

A new version of a model-based, portfolio management tool is being offered to broker-dealers seeking increased efficiencies when establishing, building, and maintaining fixed-income portfolios for retail investors as an alternative to traditional money managers or bond funds.

All The Bond Buyer's weekly yield indexes increased this week, and the one-year note index rose 107 basis points, the largest one-week index since it began in July 1989.

For the first week since the beginning of the year, tax-free money market funds saw outflows with a $10.41 billion decline for the week ending Feb. 18, causing assets to drop to $481.64 billion, down from the prior week's high of $492.05 billion, according to the Money Fund Report from imoneynet.com.

Weekly reporting municipal bond mutual funds had a net inflow of $383 million during the period ending Feb. 13, AMG Data Services reported.

There will be few sizable deals for investors to choose from in an abbreviated trading session this week due to the observance of the Presidents Day holiday, as $2.42 billion of expected new-issue volume will come to market after last week's revised total of $4.40 billion.

Tax-free money market funds inflows were down from last week's huge haul, but still totaled $2.124 billion, boosting assets to $492.05 billion for the week ending Feb. 12, according to imoneynet.com.

Nearly all of The Bond Buyer's weekly yield indexes increased this week, as uncertainty in the auction-rate market helped push yields higher through the latter part of the week.

Eleven of the market's largest tender option bond programs have approached Moody's Investors Service with plans to update the documents defining their programs so the underlying ratings of insured bonds are taken into account.

Weekly reporting municipal bond mutual funds had a net inflow of $563 million during the period ending Feb. 6, AMG Data Services reported.

New York's Metropolitan Transportation Authority and New York City will share the spotlight in the Empire State, teaming up to bring over $1.1 billion of supply to the new-issue market this week as overall volume is expected to reach $3.9 billion, significantly down from last week's revised $17.7 billion total.

The Bond Buyer's weekly yield indexes declined this week, as municipals grew firmer in each of the week's sessions until yesterday, when yields did an about-face.