Buy side

An unusually weak economic recovery is putting the credit ratings of an increasing number of states in jeopardy.

Fitch Ratings said its withdrawal of its ratings on U.S. tobacco asset-securitization bonds, which affects over 40 tobacco issues from New York to California and Michigan to the U.S. Virgin Island, was prompted by uncertainty regarding changes in the terms it views as risks in the Master Settlement Agreement.

Municipal bond market participants may agree that bank loan disclosure falls short but there's little consensus about how to improve it amid heightened regulatory scrutiny.

German Pellets Texas LLC and Texas Pellets Inc. filed petitions for Chapter 11 reorganization last month with $184.7 million of tax-exempt industrial development bonds outstanding.

Puerto Rico will need help from Washington to maintain future market access and avoid a descent into "third-world" economic conditions, municipal bond fund managers said.

For the 32nd straight week, municipal bond funds reported inflows, according to Lipper data released Thursday. Weekly reporting funds saw $1.212 billion of inflows in the week ended May 11, after inflows of $709.727 million in the previous week, Lipper said.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell three basis points to 3.90% from 3.93% in the previous week.

Investors snapped up Chicago's $537 million water revenue bond issue, allowing the city to trim the steep interest penalties its bonds typically face.

For the 31st week in a row, municipal bond funds reported inflows, according to Lipper data released Thursday. Weekly reporting funds saw $709.727 million of inflows in the week ended May 4, after inflows of $1.173 billion in the previous week, Lipper said.

In the week ended May 5, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell three basis points to 3.93% from 3.96% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Two rating agencies flagged North Carolina’s implementation of House Bill 2 in upcoming bond offerings amid a national controversy over the law seen by some as discriminatory towards the LGBT community.

Longtime municipal credit analyst Richard Larkin has joined Stoever Glass & Co. as director of municipal credit analysis for the 50-year-old Wall Street firm that specializes in municipal bonds for individuals and families and is expanding its operations South.

Conning has lowered its outlook on municipal credit for U.S. states to stable from improving as revenue growth began to show signs of strain amid rising expenditures. In its “State of the States” credit report for the first quarter, the investment firm said states have started to ramp up spending after years of restrained expenditures even as growth in revenue slows.

The Cook County Clerk’s office has reversed course and signed off on the validity of Harvey, Ill.’s property tax levy request, raising hopes that the city will make good on bond payments.

Atlantic City, N.J., averted default Monday by making a $1.8 million debt service payment, but it’s far from certain the struggling city can make other such payments this year.

Demand for municipal bonds has been so strong in 2016 that not even the arrival of income tax season could put a stopper on the flow of money into the industry.

As Pennsylvania lawmakers debate Gov. Tom Wolf's proposed $32 billion fiscal 2017 spending plan, many municipal analysts view the state's prospects in a negative light.

For the 30th week in a row, municipal bond funds reported inflows, according to Lipper data released Thursday, as demand for tax-exempts remained high through tax season.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, rose two basis points to 3.96% from 3.94% in the previous week.

State budget conditions vary widely as of late fiscal 2016, with the overall picture getting better while states with less diversified economies face significant stress, Standard & Poor's said Wednesday.