Public finance

ALABAMA

A nearly $700 million Maryland general obligation sale will headline the primary market this week -- despite facing potential spending constraints -- and will be among several other Northeast issuers that will dominate the new-issue calendar following strong activity last Friday.

Moody's Investors Service has given its stamp of approval to Virginia's new transportation funding plan, saying that it is a credit positive for the commonwealth at a time when it is highly exposed to risk from federal cuts.

Standard & Poor's downgraded bond insurer National Public Finance Guarantee three notches to BB from BBB Thursday evening.

Michigan Gov. Rick Snyder's historic decision Friday to take over the city of Detroit bodes well for the credit and for other local distressed governments, muni experts said, even as Snyder warned that all creditors might take have to take a loss.

Amid finger-pointing and political grandstanding, President Obama and congressional leaders failed to come to an agreement to avoid $85 billion in sweeping automatic budget cuts, which kicks in on Friday.

The tax-exempt market ended February on a high note with a rally across the curve.

Although negative, the effects of sequestration on state and local governments will be gradual and issuers are mostly prepared, according to Fitch Ratings, Moody's Investors Service and Standard & Poor's.

Table as of: 02/28/2013 13:59 PM Invisible Supply Issuer and purpose Amount

ARKANSAS

CALIFORNIA

The Bond Buyer's weekly yield indexes were mixed the week ended Feb. 28.

Inflows to municipal bond mutual funds ticked up this week to $324 million, making it eight consecutive weeks in the red.

Long-term municipal bond issuance hit the brakes in February, as issuers floated 22% less in volume last month than they did over the same period in 2012.

Congressional staffers and finance experts speaking at the American Association of State Highway and Transportation Officials Washington Briefing said the outlook for highway funding is more uncertain than ever, while two transport-oriented lawmakers vowed to work across the aisle to make sure state and local officials have federal support.

Tax-exempt money market funds saw modest inflows as they reversed the recent outflow pattern.

Assured Guaranty Ltd. reported quarterly profits and announced that it plans to begin writing policies with its new municipal-only insurer, Municipal Assurance Corp., later this year.

CALIFORNIA

ALASKA

Two Democrats in the Senate who influence transportation policy have introduced legislation to create the American Infrastructure Investment Fund, a $10 billion infrastructure bank.