Munis

Two Southern California school districts received upgrades from Moody's on Tuesday. Another district was affirmed.

The top underwriters saw some shuffling, with Stifel Nicolaus and Ramirez entering the top 10 and knocking Barclays and Siebert Williams Shank to 11th and 12th, respectively.

Superior, Wisconsin, officials are mulling a bond-financed acquisition of the water system currently owned by private firm Superior Water, Light, and Power.

Dealer inventories hit $8.8 billion in unsold variable rate bonds as of noon, Eastern, Tuesday, rising sharply over the past week, said Rick White, an independent consultant with more than 25 years in the industry.

The top 10 issuers accounted for $24.148 billion of total issuance, or 19%, in the quarter.

"All critical infrastructure should be on heightened awareness, and that's clearly the message that we're getting from the federal government," Linn Freedman, a partner at Robinson & Cole LLP, said.

The sector's challenges have also impacted the overall high-yield education index.

The state does not have the bonding capacity to independently rebuild the American Legion Bridge, the feds say. The state continues to hope for a federal grant to help cover the cost.

The Los Angeles County Metropolitan Transportation Authority sold about $900 million to refund older bonds and finance projects, including a subway extension.

Moody's said the $350 million of Series 2007 Class I bonds are on review for further downgrade.

Market Intelligence analyst Jeff Lipton looks back on a first quarter in which the municipal bond market was unexpectedly buffeted by the winds of war.

"I find this a very encouraging appointment," Peter Chan, a partner at law firm Baker McKenzie, said of Woodcock's appointment.

A second budget reconciliation bill is moving closer to reality, creating a mixed bag of challenges and opportunities for the municipal bond market.

The legislature passed bills to cut personal income tax rates over time and limit increases on homestead property tax payments to the rate of inflation.

As Congress returns to Washington in the next few weeks thoughts will turn to a problematic reconciliation bill, a housing bill close to completion and a farm bill facing serious challenges.

The state's latest water plan outlines $174 billion of capital water needs over the next 50 years. "The era of cheaper water is over," said one state water official.

S&P cited repeated draws on reserves for the lowered outlook.

The current 18,000-seat facility cost $87.7 million, and the city covered the cost with cash from its penny sales tax.

Judge Laura Taylor Swain is allowing the continued examination of a count in which a trustee is challenging fees, and some proceeds, of pre-bankruptcy bonds.

Issuance was $50.081 billion in 697 issues, up 17.3% year-over-year from $42.709 billion across 726 transactions.