Public finance

The unit investment trust has quietly blossomed into the dominant investing vehicle for Build America Bonds — the taxable municipal debt created under last year’s stimulus legislation.

Tax-free money market funds continued to seesaw during the week ending Aug. 30, declining $2.84 billion to $337.91 billion in total assets on the heels of nearly $600 million the previous week, according to the Money Fund Report, a service of iMoneyNet.com.

ARKANSASMagnolia School District No. 14 of Columbia CountySep 1, 2010 . . . . . . $1,045,000

ALASKAAlaska Municipal Bond BankAug 31, 2010 . . . . . . $11,430,000

If there’s a day of reckoning on the horizon for municipal closed-end funds, the market hasn’t spotted it as investors continue to fork over a premium for the trusts.

CALIFORNIALafayette Elementary School DistrictAug 31, 2010 . . . . . . $18,885,000

CALIFORNIATiburon (Town)Aug 31, 2010 . . . . . . $1,962,600

Table as of: 08/31/2010 18:42 PM Invisible Supply Issuer and purpose Amount* Approval

MISSOURIHermitage R-IV School District of Hickory CountyAug 30, 2010 . . . . . . $900,000

ILLINOISSauk Valley Community College District No. 506Aug 30, 2010 . . . . . . $6,805,000

BlackRock has raised more than $1 billion for a closed-end fund devoted to Build America Bonds, creating the largest public vehicle offering investors exposure to the new class of taxable municipal debt.

ILLINOISChannahon Park DistrictAug 24, 2010 . . . . . . $1,225,000

Table as of: 08/27/2010 15:47 PM Invisible Supply Issuer and purpose Amount* Approval

CALIFORNIACalaveras County Water DistrictAug 23, 2010 . . . . . . $990,000

Municipal bond mutual funds reported another healthy slug of new money last week as demand for high-quality fixed income continued to drive investment flows.

Investors clamoring for new supply will be faced with slim pickings this week when long-term volume in the tax-exempt market sinks to an estimated $2.61 billion — less than half of last week’s total — as trading and underwriting begins to wind down ahead of Labor Day, according to Ipreo LLC and The Bond Buyer.

CONNECTICUTTrumbull (Town)Aug 26, 2010 . . . . . . $22,000,000

ALABAMAAdamsville Solid Waste Disposal AuthorityAug 23, 2010 . . . . . . $17,000,000

Nearly all The Bond Buyer’s yield indexes declined this week, with two reaching 43-year lows, as tax-exempt yields plunged to record lows in three sessions during the week.

Outflows slowed to $597.3 million the week ending Aug. 23 after hemorrhaging $4.99 billion the week before, according to the Money Fund Report, a service of iMoneyNet.com. Total assets declined slightly to $340.75 billion from $341.34 billion.