Buy side

Analysts affirmed the stable outlook for the healthcare sector, while acknowledging that repeal of the Affordable Care Act could change the landscape.

The recently enacted National Defense Authorization Act is a credit positive for privatized military housing project bonds, Moody’s Investors Service said in a comment released on Friday.

Fund managers' reaction to a possible repeal ranged from cautious to opportunistic, as President-elect Trump and lawmakers say they plan to transition to a new health care program.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, decreased three basis points to 4.25% from 4.28% from the previous week.

Public utilities have the rate-setting flexibility to handle an 11% drop in demand for electricity through 2040, according to Fitch Ratings.

In the week ended Dec.29, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell seven basis points to 4.28% from 4.35% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Conservative strategies such as shortening duration and high liquidity proved fruitful for two mutual funds against the backdrop of massive mutual fund inflows and money market reform.

Changes to tax laws, interest rates, inflation, and volume are likely to drive the market in 2017, according to municipal experts.

Volatility whipsawed the municipal bond market in 2016 as the election of Donald Trump was followed by a swift and severe sell-off in the fourth quarter.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased to 4.35% from 4.33% from the previous week.