Public finance

The sequestration cuts scheduled to take effect March 1 could throw the muni market into uncertainty and slam the air transport sector, according to market groups and public officials.

The range of risks facing the higher education sector could lead to uneven credit performance in 2013, according to Standard & Poor's.

The tax exemption on municipal bond interest will not survive tax reform efforts in Washington, D.C., without a grass-roots effort from issuers, according to market experts at the fifth National Municipal Bond Summit.

Short and selective. That is the fixed-income philosophy that Guy LeBas, director of fixed income strategy at Janney Montgomery Scott, is putting increased focus on in 2013 because of the predominance of interest-rate risk in the market.

Municipal bond investors have watched credit spreads in the market narrow considerably over the past three years. And they aren't expected to reverse course anytime over the next 12 months.

A leaden and lackluster municipal market shuffled into the afternoon Monday. While the retail order periods for some of the week's issuance seep in, market participants, particularly institutions, have been holding their fire in the secondary in anticipation of larger offers to come, giving the market a ponderous tone.

Chicago received 16 responses in its first market outreach to identify prospective bidders in a possible deal to privatize Midway International Airport, according to the city's chief financial officer Lois Scott.

The Virginia General Assembly gave final approval on Saturday to legislation that is projected to raise more than $800 million for transportation over the next five years.

The municipal bond market adopted a weaker tone beyond the front end of the curve out of the gate Monday.

Table as of: 02/22/2013 16:49 PM Invisible Supply Issuer and purpose Amount

ALABAMA

After the municipal market struggled to get through a heavy new-issue calendar last week, another slate of sizable new deals will test the market this week, anchored by a $1.3 billion California higher education deal.

Virginia is poised to enact a funding bill that raises sales taxes but slashes fuel taxes to create $200 million of new transportation revenue each year that could be used for bonding.

Municipal market participants are encouraged but cautious about President Obama's proposal for a new type of taxable, direct-pay bond called America Fast Forward bonds to finance the nation's infrastructure.

ARKANSAS

ARKANSAS

Nearly all The Bond Buyer's weekly yield indexes increased the week ended Feb. 21.

Flows to municipal bond mutual funds remained positive for a seventh straight week, but only modestly so, recording $292 million in inflows for the week of Feb. 20.

President Obama's proposal for a Build-America-Bonds-like program for infrastructure has its roots in a proposal by the Los Angeles County Metropolitan Transportation Authority, and some infrastructure analysts say it represents a pro-business pivot from the White House.

Moody's Investors Service has a negative outlook on local governments, which continue to be pressured in the slow and uneven economic recovery.