Public finance

Tax-exempt money market funds experienced significant outflows during the week ending Sept. 27, virtually mirroring the previous reporting period, as $2.73 billion fled the market, leaving the funds with $331.62 billion in total net assets, according to the Money Fund Report, a service of iMoneyNet.com.

Table as of: 09/29/2010 15:42 PM Invisible Supply Issuer and purpose Amount* Approval

ARKANSASGuy-Perkins School District No. 34 of Faulkner CountySep 29, 2010 . . . . . . $2,810,000

ARIZONAArizona Transportation BoardSep 28, 2010 . . . . . . $180,000,000

CHICAGO — Municipal investors shouldn’t automatically shun an issuer’s debt due to a severe unfunded pension obligation without a more in-depth review that includes an issuer’s ability to address the liability, Nuveen Investments suggests in a new report on state and local pensions for investors.

Municipal issuers that are more likely to have trouble renewing bank guarantees supporting floating-rate debt face greater scrutiny from Moody’s Investors ­Service, the rating agency said in a report Wednesday.

The Manhattan Institute for Policy Research Wednesday released a report arguing that higher interest rates on taxable bonds issued by Illinois and California indicate they are more likely than other states to default on their debts.

Table as of: 09/28/2010 16:22 PM Invisible Supply Issuer and purpose Amount* Approval

ARKANSASHector School District No. 59 of Pope CountySep 28, 2010 . . . . . . $3,145,000

ARIZONAPima County Industrial Development AuthoritySep 28, 2010 . . . . . . $100,000,000

State and local government tax receipts grew modestly in the second quarter of 2010 as an acceleration in consumer spending boosted sales tax revenue.

ILLINOISEvanston/Skokie Community Consolidated School District No. 65Sep 27, 2010 . . . . . . $2,865,000

ILLINOISHarvey (City)Sep 27, 2010 . . . . . . $5,000,000

While municipal market professionals said they do not believe there is systemic risk in state and local government debt, there are underlying issues and credit challenges.

Table as of: 09/24/2010 13:32 PM Invisible Supply Issuer and purpose Amount* Approval

KENTUCKYBarbourville Independent School District Finance CorporationSep 24, 2010 . . . . . . $935,000

ARIZONAPima County Industrial Development AuthoritySep 24, 2010 . . . . . . $10,000,000

The return of bank profitability coupled with some of the provisions of the federal stimulus coaxed banks into buying state and local government debt in the first half of the year.

As the third quarter begins to wind down this week, long-term volume is expected to improve slightly, with several significantly sized deals from state and local governments contributing to $9.42 billion in estimated new issuance earmarked for pricing in the primary market, according to Ipreo LLC and The Bond Buyer.

The stream of cash running into municipal bond mutual funds continued to taper slightly last week.