Investments

Moody's Investors Service has downgraded the general revenue bond rating on the University of California ahead of its $750 million bond sale next month.

"One of these things does not belong" is a catchy slogan — and it comes to mind when looking at the latest tax policy ideas coming from Washington when looking at the municipal bond tax exemption. The exemption is not a result of the growth of a tax code designed to induce or reduce certain behaviors. Rather, it is the foundation for the flow of capital in a $3.7 trillion dollar market required to efficiently finance the nation's infrastructure.

The Transportation Department may have to begin rationing state highway grants in July as the Highway Trust Fund is expected to dip below the critical $4 billion mark by summer.

CALIFORNIA

ARKANSAS

Buoyed by record ridership in 2013, public transit advocates want their fair share of funding from Washington in the next multi-year surface transportation bill.

Detroit's high-profile battle with its bondholders will likely have limited impact in the national market, as general obligation pledges vary widely across the country, Moody's Investors Service said in a new report.

The bankruptcy litigation surrounding Detroit's general obligation bonds is unlikely to have a broad legal impact on the meaning of the GO pledges in bonds nationwide, says Moody's Investors Service in a report.

Standard & Poor's raised its rating on the Iowa Board of Regents' parking system revenue bonds one level to AA-minus based on strong parking demand.

KANSAS

ALABAMA

While much of Puerto Rico's $3 billion general obligation bond issue Tuesday may be scooped up by nontraditional muni buyers such as hedge funds, retail investors in one case have actually been restricted from buying the island's new debt.

Ohio is selling $300 million of general obligation bonds and Gov. John Kasich is expected to unveil a new budget bill that features an income-tax cut on Tuesday

Construction associations and labor unions have formed a grassroots coalition to pressure Congress for additional investment in transportation infrastructure.

NEW JERSEY

CALIFORNIA

JPMorgan and Charles Schwab have extended an agreement to provide Schwab's clients with access to municipal bonds issued by JPMorgan.

Analysts are divided on whether Puerto Rico's unusually frank disclosures before its $3 billion bond issue scheduled for Tuesday will help or hurt the sale.

Sen. Mark Kirk, R-Ill., wants an additional $4 billion of tax-exempt private activity bonds available for transportation projects.

Hedge funds and cross-over investors are expected to devour Puerto Rico's junk-rated sale of general obligation bonds when the $3 billion deal thunders into the primary market, municipal observers said.