Public finance

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

ARKANSASFlippin School District No. 26 of Marion CountySep 23, 2010 . . . . . . $2,260,000

ALABAMAPhenix City (City)Sep 23, 2010 . . . . . . $33,940,000

The Bond Buyer’s weekly yield indexes declined this week as the municipal market rallied behind the economic warning the Federal Open Market Committee sounded Tuesday to end a weeks-long pattern of losses.

Pacific Investment Management Co.’s newest exchange-traded fund drags the active-versus-passive management debate into the taxable municipal bond space.

Outflows among tax-exempt money market funds more than doubled in the week ending Sept. 20 when $2.71 billion exited the funds and total net assets settled at $334.36 billion, according to the Money Fund Report, a service of iMoneyNet.com.

Table as of: 09/22/2010 16:15 PM Invisible Supply Issuer and purpose Amount* Approval

ARKANSASCedarville School District No. 44 of Crawford CountySep 22, 2010 . . . . . . $930,000

ALASKAAlaska Housing Finance CorporationSep 21, 2010 . . . . . . $78,810,000

The Basel III bank capital requirements proposed earlier this month threaten to eviscerate the supply of eligible investments for tax-free money market funds — an industry already struggling with a severe supply shortage.

Table as of: 09/21/2010 15:38 PM Invisible Supply Issuer and purpose Amount* Approval

ARKANSASFayetteville School District No. 1 of Washington CountySep 21, 2010 . . . . . . $3,570,000

ARKANSASVilonia Waterworks AssociationSep 21, 2010 . . . . . . $2,480,000

A fund devoted to investing in Build America Bonds would have a tough time avoiding debt backed by the states of California and Illinois altogether. Eaton Vance is doing its best.

IOWAOrange City (City)Sep 20, 2010 . . . . . . $1,500,000

IOWAIowa Western Community CollegeSep 20, 2010 . . . . . . $15,450,000

Hospitals, universities and other not-for-profit issuers are enjoying exceptionally low ­borrowing costs and rampant demand for their debt. The only problem is it is not likely to last forever.

WASHINGTON — Mega muni investor Peter Kuhn is bullish on muni bonds, but says investors should be very careful about what they buy and issuers should provide more timely and informative secondary market information.

MISSISSIPPIPelahatchieSep 15, 2010 . . . . . . $950,000

ALABAMAChatom Industrial Development BoardSep 17, 2010 . . . . . . $74,645,000