Investments

State and local governments amassed their biggest-ever debt burden during the fourth quarter, meeting demand from retail buyers and a broadened investor base driven by federal stimulus programs.

Most of The Bond Buyer’s weekly yield indexes declined slightly this week, as some firmness continued to permeate a mostly unchanged municipal market.

Stanford University is preparing to issue up to $300 million of new tax-exempt debt this month, said treasurer Odile Disch-Bhadkamkar.

Continuing the recent outflow activity, tax-exempt money market funds lost $2.55 billion and finished with $377.04 billion for the week ending March 8, according to the Money Fund Report, a service of iMoneyNet.com.

ARKANSASJonesboro School District No. 1 of Craighead CountyMar 10, 2010 . . . . . . $16,440,000

CALIFORNIADelano Joint Union High School DistrictMar 9, 2010 . . . . . . $10,000,000

A debate is brewing in the municipal bond exchange-traded fund industry.

CHICAGO — Facing a $13 billion deficit, Illinois Gov. Pat Quinn yesterday unveiled a $52 billion fiscal 2011 budget that cuts spending by $2.4 billion, relies on $4.7 billion in deficit borrowing, and leaves nearly $6 billion in bills unpaid.

Table as of: 03/09/2010 15:11 PM Invisible Supply Issuer and purpose Amount* Approval

CALIFORNIAMill Valley School DistrictMar 9, 2010 . . . . . . $29,195,000

ALABAMARussellville Electric BoardMar 8, 2010 . . . . . . $2,750,000

IOWACedar Falls (City)Mar 8, 2010 . . . . . . $5,135,000

COLORADOColorado Educational and Cultural Facilities AuthorityFeb 23, 2010 . . . . . . $7,355,000

DALLAS — With higher education at the center of Arizona’s debate over how to revive its struggling economy, two of its major state universities will issue $237 million of revenue bonds to upgrade their flagship campuses.

NEW JERSEYCresskill BoroughMar 5, 2010 . . . . . . $2,686,000

ARIZONAVail Unified School District No. 20Mar 5, 2010 . . . . . . $15,325,000

Table as of: 03/05/2010 16:34 PM Invisible Supply Issuer and purpose Amount* Approval

Investors continue to stuff municipal bond mutual funds with cash, supporting bond prices even as by some measures they are nearly as expensive as they have ever been.

For banks that built up significant portfolios in the municipal interest rate swap business, it may be time to consider what to do when the customer isn’t always right.

After a one-week postponement due to stalled legislation, California will make its way to market with a $2 billion sale of various-purpose general obligation bonds.