Investments

WASHINGTON — The Obama administration will recommend making permanent the Build America Bonds program in its fiscal 2011 budget proposal Monday, a Treasury spokesperson said Friday night.

Why try to match the market when you can beat it?

Issuers in New York and Massachusetts are headed to the primary market with large financings this week earmarked for transportation, environmental, and education purposes as part of a $4.11 billion in expected new volume, according to Ipreo LLC and The Bond Buyer.

The pace of new money flooding into municipal bond mutual funds appears to be picking up again after a lull.

ARKANSASArkansasJan 28, 2010 . . . . . . $23,000,000

ALABAMABirmingham Special Care Facilities Financing AuthorityJan 28, 2010 . . . . . . $17,175,000

Retail investors have much less apprehension about the municipal bond market heading into 2010 than they had at the start of 2009, according to market participants.

All The Bond Buyer’s weekly yield indexes rose this week, as tax-exempts weakened in nearly all the past few sessions, particularly on the long end of the curve.

The state Legislative Analyst’s Office on Tuesday lambasted one of Gov. Arnold Schwarzenegger’s highest-profile proposals for the year: a constitutional amendment that would require California, starting in 2014, to dedicate no more than 7% of its general fund spending to prisons and at least 10% to public universities.

After yield-hungry investors yanked nearly $7.7 billion from tax-exempt money market funds last week, outflows slowed to $2.65 billion the week ending Jan. 25, leaving total assets at $390.97 billion, according to the Money Report, a service of iMoneyNet.com.

CONNECTICUTLitchfield (Town)Jan 27, 2010 . . . . . . $475,000

CALIFORNIAAlhambra (City)Jan 22, 2010 . . . . . . $43,940,000

WASHINGTON — The Securities and Exchange Commission yesterday voted 4 to 1 to approve a series of changes to its Rule 2a-7 on money market funds aimed at boosting the resilience of funds during market crises, and promised to move forward with additional rules in the future.

The Dormitory Authority of the State of New York approved up to $285 million of tax-exempt bonds on behalf of Cornell University at its monthly board meeting yesterday.

CONNECTICUTThomaston (Town)Jan 26, 2010 . . . . . . $2,820,000

ARKANSASLawrence County Regional Water DistrictJan 22, 2010 . . . . . . $2,600,000

Table as of: 01/26/2010 16:37 PM Invisible Supply Issuer and purpose Amount* Approval

Yale University got the green light yesterday to bring $800 million of tax-exempt bonds to market next month, though the offering is expected to be considerably smaller.

Standard & Poor’s last week revised the outlook on seven Illinois state universities to negative from stable due to their exposure to the state’s liquidity problems that have resulted in delays in state aid payments.

ILLINOISPlainfield Community Consolidated School District No 202Jan 25, 2010 . . . . . . $30,030,000