”We were stronger without the push by Treasuries but now with that market rallying the bid for municipals is definitely improving,” a trader said. “We noted New York City water bonds from this week’s deal out in 2045 trading at a 3.80% after those bonds closed yesterday at 3.94% - that’s a big jump. What started as a bit stronger turned into a rally today as it seems the Street was” ...continued (Clients - See Full Report) FREE TRIAL

Better Start
(INSIGHT: pub. January 25, 2012; 10:30a EST)
Municipal bonds firmed again this morning on light secondary activity:

”There are not a lot of accounts chasing the bid here but clearly there is a better tone, although to us it seems dealer-led,” a trader said. “You see a dealer offer, say, Fairfax County GOs through a brokers-broker, and within a few minutes they get lifted at firm levels by another dealer. That happened early on and it sort of sets the tone. Now we are seeing better markets on New York City waters, Wake County’s – you name it. It just got the ball rolling and now we are” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. January 24, 2012; 3:30p EST)
Municipal bonds traded with a mixed tone today as the primary was generally well received:

”Most negotiated loans are getting oversubscribed and the bids on Wake were strong as well, which is leading this market to a better place,” a trader said. “At first I was skeptical that the term bonds on New York waters could get done at 3.97% but now we are hearing that bullet is oversubscribed for. Any bids-wants I’ve been following today are not getting the poor bids of” ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary & Wake County Loan Looming
(INSIGHT: pub. January 24, 2012; 10:30a EST)
Municipal bonds traded in mixed fashion but were generally range-bound this morning as the new-issue market takes center stage:

”Reads on yesterday’s retail deals are positive and we are seeing good interest in today’s offering as well,” a trader said. “We are curious to see how Wake County is bid given the recent market turbulence. With Treasuries seemingly staying put today there appears to be more money being put to work and we even see perhaps a” ...continued (Clients - See Full Report) FREE TRIAL

Modest Losses
(INSIGHT: pub. January 23, 2012; 3:30p EST)
Municipal bonds declined in spots today as secondary activity never really picked up.

”Overall we are not seeing much trading this afternoon but the tone is definitely weaker and bids are scarce,” a trader said. “When we get some supply we’ll get a clearer picture. The market was so positive for the last month and then negative the last few trading sessions that we have not seen much two-way flow and that would be nice to see. We get the sense that there are still” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker; NYC Water To Retail
(INSIGHT: pub. January 23, 2012; 10:30a EST)
Municipal bonds continued to trade with a weaker tone this morning but activity remained limited:

”We continue to see a lot of offerings out there at cheaper levels and the prints we’ve seen so far indicate weaker again,” a trader said. “Losses are less then what we had late last week but that may be a function of limited overall activity so far. New York City waters are in the market but only a” ...continued (Clients - See Full Report) FREE TRIAL

More Selling Pressure Leads To Losses
(INSIGHT: pub. January 20, 2012; 3:30p EST)
Municipal bonds extended losses into the afternoon as selling pressure mounted and Treasuries weakened:

”Selling pressure started in the 10-year range but as the day progressed we did see more sellers out long,” a trader said. “We’ve posted one of the best January’s in a long time and clearly there has been some sticker-shock at these levels. Also keep in mind that there is a broader sense of confidence in the equities market and that might also start to” ...continued (Clients - See Full Report) FREE TRIAL

Losses Resume
(INSIGHT: pub. January 20, 2012; 10:30a EST)
Municipal bonds declined yet again this morning but on lighter secondary activity:

”There are again a number of sellers out there and it is weakening the market,” a trader said. “From our vantage point, the large money managers that sold big yesterday are actually quiet at this point. Instead we see some dealers selling in here. It makes sense, these bonds have a lot of profit in them – they owned them for a month, ran up the market and now take some profit. Some guys are saying it is” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Sell-Off
(INSIGHT: pub. January 19, 2012; 3:30p EST)
Municipal bonds extended early morning losses into a full-on sell-off today as secondary selling pressure took its toll:

”Nothing goes in one direction forever,” a trader said. “Today we had a lot of bids-wanteds. As far as block bids-wanteds, not including anything under $1 million, we were just over $500 million around 1:30 this afternoon. That is really the largest number in six months. Money managers, dealers and cross-over accounts getting out of the market led the” ...continued (Clients - See Full Report) FREE TRIAL

Wait For It...Cheaper
(INSIGHT: pub. January 19, 2012; 10:30a EST)
Municipal bonds declined slightly for the first time in over a month this morning:

”There were some early prints that for the first time were clearly a bit cheaper than yesterday’s levels,” a trader said. “We did not see the early morning inquiry that we have seen lately. Still, no major trends have shifted, we still have inflows and limited supply. But I think the ratios are starting to look less appealing and there is a growing consensus that these” ...continued (Clients - See Full Report) FREE TRIAL

Modest Gains; New-Issues Do Very Well
(INSIGHT: pub. January 18, 2012; 3:30p EST)
Municipal bonds improved modestly today despite a fade in the Treasury market as the afternoon progressed:

”While the Street was less active today than it has been of late, the market continues to grind to lower and lower yields,” a trader said. “We contend that it continues to be more and more dealer-led, as was evidenced by today’s strong bids in the competitive market. But the reality is we have no real sellers or profit takers in here. I do think some dealer arbs have” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Out Of The Gates
(INSIGHT: pub. January 18, 2012; 10:30a EST)
Municipal bonds traded with a firmer tone this morning amid a reasonably busy primary market:

”Municipals continue to push it, but today it seems to be a bit less than previous trading sessions,” a trader said. “Still, we expect strong numbers on the day’s competitive loans. We also have a few high-grade negotiated sales along with some lower-rated hospital credits in the market so it gives some variety to pick from. As we continue to move lower though it will be interesting to watch the coupons on many of these sales as the” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Again Today
(INSIGHT: pub. January 17, 2012; 3:30p EST)
Municipal bonds posted gains again today but in a thinner secondary market to start the week:

”The trading is on the lighter side but still this market is being pushed to lower yields today,” a trader said. “We continue to see inquiry from a lot of different types of accounts but we must admit that the dealer community is starting to lead it more and more. We are having more conversations with people about where this thing ends and that tends to be a precursor to a rally actually ending. Still, the name high-grade names keep trading up bit by bit and the lower-rated stuff is really gapping tighter.” ...continued (Clients - See Full Report) FREE TRIAL

Rally Out Long
(INSIGHT: pub. January 13, 2012; 3:30p EST)
Municipal bonds rallied today along with the Treasury market although the secondary did slow down somewhat this afternoon:

”The long-end is better, the intermediate is better and even the front-end has a firmer tone to it,” a trader said. “Right out of the gates this market was strong and it kept building. This afternoon is definitely slowed as dealers pulled offerings and desks emptied out for what used to be a half-day Friday.” ...continued (Clients - See Full Report) FREE TRIAL

Very Strong Open
(INSIGHT: pub. January 13, 2012; 10:30a EST)
Municipal bonds rallied this morning along with Treasuries:

”It is crazy where some of this stuff is trading but it is really trading at these levels,” a trader said. “We are better again this morning and the movement in Treasuries is encouraging more money into this market if that is even possible. Usually things slow down ahead of a 3-day weekend but I think the expectation is that this keeps going next week so accounts continue to bid up the market.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Extend Gains This Afternoon
(INSIGHT: pub. January 12, 2012; 3:30p EST)
Municipal bonds posted modest gains today while Treasuries remained generally range-bound this afternoon:

”The market keeps plugging along and I’d say we’ve extended gains in that 20-year area from this morning,” a trader said. “We’ve seen some customer bids-wanteds getting pretty big numbers consistently all day. We are also seeing Illinois GOs break up 5-basis points in 2025 and 2026 today and those bonds were priced at already aggressive levels yesterday. This market just keeps grinding and next week’s issuance will” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Firmer Out Of The Gates
(INSIGHT: pub. January 12, 2012; 10:30a EST)
Municipal bonds maintained a firmer tone this morning while Treasuries remained range-bound:

”This morning we continue to see a firmer bid but for now the market is more subdued than it was yesterday,” a trader said. “We continue to see the most liquid names of late – Mass GO, Florida PECOs and Georgia’s to name a few – trade up but today it is more like 2 to 3 better out long and not 6 or 8 like we had yesterday.” ...continued (Clients - See Full Report) FREE TRIAL

Rally Out Long
(INSIGHT: pub. January 11, 2012; 3:30p EST)
Municipal bonds rallied 15-years and out today and credit spreads tightened as the final large deals of the week priced:

”Municipals have rallied hard in general as a market but this week it feels more and more like dealers are painting the tape” a trader said. “Looking at the supply down the road, there is just not much that can stop this roll. We have had a correction from the ratios of the last quarter as tax-exempts have greatly outperformed taxables this month. The long-end continues to perform the best and it has to be that the” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Start; Large Competitive Market Today
(INSIGHT: pub. January 11, 2012; 10:30a EST)
Municipal bonds gained this morning with a big push out long again:

”Everyone has cash and there is not much to choose from out there,” a trader said. “The long-end is clearly benefitting the most from this but there are firmer bids all across the curve. It has to stop sooner or later but I don’t see it happening for at least another” ...continued (Clients - See Full Report) FREE TRIAL

Strong Day...Again
(INSIGHT: pub. January 10, 2012; 3:30p EST)
Municipal bonds improved once again with the best performance 15-years and out amid busy primary and secondary markets:

”We are seeing the market being bid up,” a trader said. “Individuals may be suffering a little sticker shock, but institutional buyers are putting funds to work. We see the long-end better by 2- to 3-basis points but some high-grade bonds such as Delaware GOs out long are being bid as much as 5 through our scale.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer; Florida To Sell Shortly
(INSIGHT: pub. January 10, 2012; 10:30a EST)
Municipal bonds opened with a better tone once again as the primary market beings to heat up:

”The bid is there once again and the secondary saw good two-way flow throughout the morning,” a trader said. “A lot of the names that have been trading in blocks a lot lately – your Mass GOs, Pennsy’s, New York waters – are all trading at firmer levels to recent quotes. New deals are starting to enter the picture, but it is a lot of” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Improve As Some Deals Price
(INSIGHT: pub. January 9, 2012; 3:30p EST)
Municipal bonds posted gains once again today with the best performance continuing in the 20-year range as the secondary saw decent activity for a Monday:

”The market is still very firm and it seems as though more and more accounts are accepting market levels and moving into tax-exempts despite low absolute rates,” a trader said. “Secondary trading definitely justifies moves of as much as 5- or 6-basis points in the 15- to 22-year range though it will be interesting to see if Governments can continue this march much longer if the supply picture changes at all.” ...continued (Clients - See Full Report) FREE TRIAL

Municipal bonds traded stronger to start the day:
(INSIGHT: pub. January 9, 2012; 10:30a EST)
”Once again we see the market firming up right off the bat,” a trader said. “I am seeing firmer markets all across the curve but once again the biggest push is in that 20-year range. The secondary is seeing a decent amount of trading for a Monday morning and for now that is really all there is to report as the primary hasn’t really begun and other markets appear range-bound.”

High-grades improved 2- to 4-basis points this morning, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Strong Day; Illinois Thoughts
(INSIGHT: pub. January 6, 2012; 3:30p EST)
Municipal bonds traded with a firmer tone into the afternoon as demand from a variety of investors continues to move yields lower:

”I’d say we had some of the strongest trades in the early afternoon with some pulling as much as 4- or 5-basis points through yesterday’s levels,” a trader said. “We’ve gotten to the point now where dealers are pulling offerings and trading has dried up because there is more money to be made next week for these guys. The long-end is seeing the best performance right now. When we have a strong Treasury market like today the arbs and mutual funds will try to push” ...continued (Clients - See Full Report) FREE TRIAL

Minimal Supply In The Wings
(INSIGHT: pub. January 6, 2012; 10:30a EST)
Municipal bonds were little changed this morning but there continued to be a decent amount of secondary activity after the monthly employment report was released:

”Next week’s supply is once again minimal with a good portion of it coming taxable, which only helps the case of tax-exempt performance,” a trader said. “This morning’s labor report was better than most expected and while Treasuries weakened a bit right after, now we are seeing it having no impact on that market. For municipals, we are seeing more of a mixed tone. Yes there continue to be firm prints on certain names but we also see some guys doing what looks to be” ...continued (Clients - See Full Report) FREE TRIAL

Firmer As A Few Deals Price
(INSIGHT: pub. January 5, 2012; 3:30p EST)
Municipal bonds improved modestly 10-years and out today despite a weaker Treasury market this afternoon:

”The supply/demand balance is off right now and looking at next week’s calendar it will continue to be so,” a trader said. “The market is not rallying or anything like that but there just continues to be inquiry and a slow grind to lower yields. Absolute levels are at or near historic lows and that is keeping it in check but people still are willing to pay up and until we get a whipping in Treasuries or some real supply, it is likely to continue this way.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer With An Uptick In Secondary Activity
(INSIGHT: pub. January 4, 2012; 3:30p EST)
Municipal bonds saw an uptick in secondary activity and tax-exempts were generally firmer as a result despite weakness in Treasuries:

”Earlier on I would have called your read on the market incorrect as I saw the market having a weaker bias but now I’m starting to see more firmer trades,” a trader said. “I will say I am seeing some resistance to the super high-grade stuff but we are starting to see double-A names like Wisconsin, Washington and Pennsylvania find a stronger bid as traders are” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Firmer 10-Year Area
(INSIGHT: pub. January 4, 2012; 10:30a EST)
Municipal bonds firmed slightly around the 10-year spot this morning while elsewhere securities were generally little changed:

”The market has been pretty active so far this morning,” a trader said. “There are still no bonds around to speak of so clean offerings are getting bid aggressively. Certainly in and around the 10-year part of the curve. Further out trading is much thinner so it is hard to get a good feel but the market as a whole feels” ...continued (Clients - See Full Report) FREE TRIAL

Quiet
(INSIGHT: pub. January 3, 2012; 3:30p EST)
Municipal bonds were lightly traded but slightly cheaper in spots as Treasury yields rose in the afternoon:

”As the first day back we just didn’t see much of anything trading today,” a trader said. “It will pick up somewhat as the week continues but with little coming from the primary this week as a whole we should not see that much activity. Dealers continue to hold back inventory in hopes of” ...continued (Clients - See Full Report) FREE TRIAL

Munis Generally Ignore Taxable Sell-Off
(INSIGHT: pub. January 3, 2012; 10:30a EST)
Municipal bonds were little changed to slightly cheaper in spots as Treasuries sold off this morning:

”The promise of January reinvest and still appetizing relative value is keeping the secondary free of profit-takers this morning,” a trader said. “With limited supply this week, we do not expect a move in rates unless we see Treasuries continue to sell-off. So for right now, we are still little changed. Still, for the first trading day of the year, the Street is seeing a decent amount of” ...continued (Clients - See Full Report) FREE TRIAL

MEAG To BAML
(INSIGHT: pub. December 29, 2011; 12:30p EST)
Municipal bonds were lightly traded generally little changed today as Bank of America Merrill Lynch purchased MEAG’s taxable offering today at what most considered to be very strong levels:

”Normally we wouldn’t pay attention to a taxable offering like this one but the timing makes it really the biggest news of the day,” a trader said. “The cover-bids were enormous for this sale so clearly the dealer was adamant that they own these bonds. Aside from that, there were some shorter bids-wanteds earlier on that printed out firm numbers on the tape. Next week’s supply is” ...continued (Clients - See Full Report) FREE TRIAL

On Thursday, the municipal market will distribute its last major sale...
(INSIGHT: pub. December 28, 2011; 3:30p EST)
While the Treasury market awaited Italy’s year-end bond sale on Thursday as a measure of the EU debt-crisis status, the municipal market will distribute its last major sale, GA MEAG, a taxable issue. The attractiveness of strong credits amid the global uncertainty projected into 2012, has facilitated opportunistic access for issuers at year end.

The wide spread differential between MMA’s median and 5% benchmarks have approached historical levels that have coincided and confirmed the particular advantage for issuers who can gain access to the capital markets through the competitive or negotiated process. ...continued (Clients - See Full Report) FREE TRIAL

Quiet On All Fronts
(INSIGHT: pub. December 27, 2011; 3:30p EST)
Municipal bonds were very lightly traded and little changed today:

”There were a few smaller bids-wanteds in the late morning that traded where we thought they would,” a trader said. “And by that I mean pretty much at Friday’s levels. Aside from that, we are not seeing much activity in the secondary or the primary markets. Most fixed-income markets were slow today and municipals were no different.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. December 27, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning:

”There has not been much trading to indicate a tone,” a trader said. “The expectations are high for the January re-invest so many dealers are waiting for the new year. With that, we just see this market as unchanged with little activity to start the week.” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed To Weaker In Spots
(INSIGHT: pub. December 23, 2011; 12:30p EST)
Municipal bonds showed a slight drift on parts of the curve as Treasuries sold-off:

”Municipals are not inclined to do much today given the time of the year but with Treasuries off again we are drifting slightly,” a trader said. “At most we are 1- or 2-basis points cheaper in the 10-year range but really there has not been much trading, there is not much secondary profit-taking and the new-issue calendar remains light.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes But Inquiry Persistent
(INSIGHT: pub. December 22, 2011; 3:30p EST)
Municipal bonds were little changed today but the secondary was active for this time of the year:

”We are seeing good liquidity for this time of the year,” a trader said. “People like to talk about the January re-invest and that right now the calendar does not look too robust until the second half of next month. I tend to disagree though as issuers are more in tune with this favorable market and I think we will see a wave of refundings coming and that could spook the market. Today it was little changed but there was a lot of inquiry out there.” ...continued (Clients - See Full Report) FREE TRIAL

Slow Start
(INSIGHT: pub. December 22, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasuries firmed:

”It looks like most accounts are willing to sit tight into year-end,” a trader said. “This has been an excellent year for most investors in this market and it would take a lot to start to change that. That being said, we expect a build-up of advanced refundings to start to occur so some may take the opportunity to sell into this. If that is the case, it is not” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Day But Generally Steady
(INSIGHT: pub. December 21, 2011; 3:30p EST)
Municipal bonds were lightly traded and generally little changed although some called for minor weakness in spots:

”In a time when you think people would be packing it in, we are seeing a bit more activity than you normally would at this point,” a trader said. “I mean, this was still a light secondary and non-existent primary, but still there is some cash being put to work. We are seeing a good amount of swap activity and some non-traditional” ...continued (Clients - See Full Report) FREE TRIAL

Light Start
(INSIGHT: pub. December 21, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”It is mostly little changed as a result of little secondary or primary activity,” a trader said. “Some are calling it a touch weaker as Treasuries are starting to fade again but from our perspective we have yet to see enough activity to call it that. We are not seeing much secondary selling either although I’ve heard some strategists saying it is time to” ...continued (Clients - See Full Report) FREE TRIAL

Relatively Unchanged As Treasuries Sell Off
(INSIGHT: pub. December 20, 2011; 3:30p EST)
Municipal bonds were generally little changed today even though Treasuries sold-off as a lack of secondary selling and strong interest in the day’s competitive loans buoyed tax-exempts:

”There is no forced selling in here and it is keeping the general market unscathed,” a trader said. “We might be off a touch out long as the hedges are off but there is not much trading out there and we are seeing cheap bids getting hit yet. One has to imagine that once we move into the new year though and the refundings start to pour in that” ...continued (Clients - See Full Report) FREE TRIAL

Waiting On Last Major Deal Of The Year
(INSIGHT: pub. December 20, 2011; 10:00a EST)
Municipal bonds were little changed this morning while the U.S. Treasury market took back yesterday’s gains:

”Tax-exempt space is steady as she goes this morning,” a trader said. “While firmer yesterday, we underperformed the Treasury market and most are going to wait and see what the bids are on the Massachusetts loan due out shortly. Some are calling the long-end firmer again but I think on such little activity that is a stretch for now.” ...continued (Clients - See Full Report) FREE TRIAL

The waning days of 2011, prompted light activity
(INSIGHT: pub. December 19, 2011; 3:30p EST)
The outlook for issuance is seasonally light (30-day < $4B) and therefore the steady interest by banks, funds and individuals should be sufficient to sustain upward price movement and low absolute yields (now comparable to Sept. 22).

The comparison of offering yields to the MMA median highlight the “richness” in the market. However, as has been noted throughout December, the persistence of the upward trend has to be respected. ...continued (Clients - See Full Report) FREE TRIAL

Firmer Tone Develops
(INSIGHT: pub. December 16, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots this afternoon as the gains in the Treasury market led some tax-exempts higher:

”It is very quiet but there are definitely some firmer trades in spots,” a trader said. “The short-end isn’t seeing much activity but I’d say 10-years and out is where I can point to a good number of firmer trades. Not much but enough to call it that.” ...continued (Clients - See Full Report) FREE TRIAL

Light Trading
(INSIGHT: pub. December 16, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”Even with a firm bid in the Treasury market, municipals are not going anywhere today,” a trader said. “It is more a function of the lack of trading than anything else. We are seeing some names that are in default or have a serious credit impairment trading in blocks today. Some Florida CDD’s and AMR-backed unsecured stuff has traded at very cheap prices. Our guess is that is just” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. December 15, 2011; 3:30p EST)
Municipal bonds were slightly firmer today despite losses in Treasuries the entire day:

”The market still has a bid, especially 10-years and out,” a trader said. “Money is slowly being put to work and we continued to see the most interest on the long-end, similar to yesterday. In the afternoon the market quieted down considerably, which had some calling the market more unch but we see it as firmer based on the morning activity.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. December 15, 2011; 10:30a EST)
Municipal bonds traded with a firmer tone this morning, ignoring the slightly weaker bid for Treasuries:

”The municipal market remains firm on certain names and out long we see spreads continuing to narrow,” a trader said. “There is just a lot of money looking for bonds right now. The new-issue market is generally done for the week – and with the exception of Massachusetts next week – we look to” ...continued (Clients - See Full Report) FREE TRIAL

Long-End Much Better; Florida Sells to JPM
(INSIGHT: pub. December 14, 2011; 3:30p EST)
Municipal bonds improved today in the footsteps of the Treasury market with the long-end performing the best:

”There were a few large buyers with a focus in particular on the long-end of the curve that led to decent improvement out there,” a trader said. “The rally in the Treasury market was clearly the impetus today and this is now the second day of this and municipals continue to underperform. So, even at these low nominal yields, the ratios are on the” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes; Florida Selling Soon
(INSIGHT: pub. December 14, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasuries gained early on:

”Municipals are not seeing that much change in price today but if anything we are a bit firmer,” a trader said. “The light new issue calendar continues to see solid interest and when Florida gets off 18 hour notice to come to market, it is safe to infer that the market is going strong. As for the competitive market, DC cancelled their competitive sale but we understand that it was a result of” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots After Weak Start
(INSIGHT: pub. December 13, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots today as Treasuries extended gains into the afternoon:

”I think with the strong 10-year auction in Treasuries and the firm bids on the competitive loans today led to a firmer bid this afternoon,” a trader said. “Maybe we were a bit weaker early on with some profit taking in the 10-year area but still there seems to be decent liquidity for double-A rated or better bonds.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker In Spots
(INSIGHT: pub. December 13, 2011; 10:30a EST)
Municipal bonds were little changed to slightly cheaper this morning while the largest loan of the week – out of the competitive market – is set to sell shortly:

It feels a little overbought today,” a trader said. “The 10-year triple-A at 1.93% is a sale indicator to us. Low supply and year-end window dressing should keep rates low but think the rally has” ...continued (Clients - See Full Report) FREE TRIAL

Minor Gains Up Front
(INSIGHT: pub. December 12, 2011; 3:30p EST)
Municipal bonds were generally little changed but a firmer tone developed 10-years and in while the Treasury market was strong the entire day:

”With little trading and little issuance there is not that much to point to but we did see a decent amount of stronger trades up front to bump the short-end,” a traders said. “The secondary saw limited activity throughout the day and we are hoping that will change as new-issues start to kick in. December issuance is likely to be lower than recent norms though and that should” ...continued (Clients - See Full Report) FREE TRIAL

Quiet To Start
(INSIGHT: pub. December 12, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots this morning:

”There is not much trading but there is clearly a bid for bonds in the 10-year range,” a trader said. “The gains in Treasuries are making for a bid in municipals.”

High-grades were little changed to better by 2-basis points in the intermediate sector, traders said.

”While the high-grade market quieted down on Friday last week, the market for high-yield was fairly active,” a trader said. “A lot of the new-issues from last week such as those hospital deals continued to trade” ...continued (Clients - See Full Report) FREE TRIAL

Even While Treasuries Decline
(INSIGHT: pub. December 9, 2011; 3:30p EST)
Municipal bonds were little changed today while the U.S. Treasury market declined substantially:

”The Street was very quiet this afternoon,” a trader said. “We are probably unch for a benchmark but really the Street had a mixed feel to it. Some people were selling into this and taking profits at slightly cheaper levels while others were trying to move it forward. With such large losses in the Treasury market though, municipals couldn’t get going like earlier this week. Supply next week isn’t” ...continued (Clients - See Full Report) FREE TRIAL

Steady This Morning
(INSIGHT: pub. December 9, 2011; 10:30a EST)
Municipal bonds were little changed this morning and lightly traded:

”New deals did very well this week and the high-grade market performed very well,” a trader said. “But today there is more of a lethargic tone as we enter the holiday lull. I look through the new-issue calendar and there isn’t much to look at. It seems as through the primary is closing up early this year.” ...continued (Clients - See Full Report) FREE TRIAL

Another Strong Trading Session
(INSIGHT: pub. December 7, 2011; 3:30p EST)
Municipal bonds posted large gains today in an active secondary while most new-issues were well received:

”There has been a bid for municipals all day long,” a trader said. “There is some new-money involved but a lot of it also seems to be fast money. The financial networks are talking about the ratios today a lot. The competitive underwriter’s race is on and those guy paid up this week but for the most part those deals appear to be” ...continued (Clients - See Full Report) FREE TRIAL

Better Again
(INSIGHT: pub. December 7, 2011; 10:30a EST)
Municipal bonds improved again this morning while the new-issue market featured several lower-rated issuers:

”It’s strong out of the gates again,” a trader said. “There are a lot of names trading in blocks today better than where they traded yesterday. Offerings are limited and what is offered is getting a lot of interest. The new-issue market has some deals that are offering a good amount of yield and we suspect that there will be a” ...continued (Clients - See Full Report) FREE TRIAL

Large Gains For Municipals
(INSIGHT: pub. December 6, 2011; 3:30p EST)
Municipal bonds posted large gains today despite a weaker Treasury market:

”The market feels very good,” a trader said. “There was strong bidding for the day’s quality deals, but dealer interest may be as much about rankings as market opportunities. That said, the tone is very good and December reinvestment funds are” ...continued (Clients - See Full Report) FREE TRIAL

Strong Start For Municipals
(INSIGHT: pub. December 6, 2011; 10:30a EST)
Municipal bonds gained this morning on decent secondary flow while the new-issue market also offered a variety of names:

”We are continuing where we left off on Friday with some decent gains, especially around the 10-year range this morning,” a trader said. “In the secondary, we are seeing a few large buyers in particular picking a point on the curve and buying in. Cash is definitely being” ...continued (Clients - See Full Report) FREE TRIAL

Retail Order Periods Kick Off Week
(INSIGHT: pub. December 5, 2011; 3:30p EST)
Municipal bonds traded with a better tone this afternoon while the New York City Transitional Finance Authority and DeKalb County priced bonds for retail investors:

”A firmer bid emerged in the late morning and carried on in the afternoon,” a trader said. “There are a lot of buyers out there and more often than not we are seeing buyers willing to reach to buy bonds in here. I think with Treasuries trading better than where we started and with year-end lull in supply pending, more accounts are willing to put” ...continued (Clients - See Full Report) FREE TRIAL

Even Start
(INSIGHT: pub. December 5, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning while Treasuries declined:

”While Treasuries are under a lot of pressure this morning that isn’t the case for tax-exempt securities,” a trader said. “Treasuries are essentially back to Thursday’s levels after the rally on Friday so it isn’t creating any selling pressure in municipal space. Trading is light and most are waiting for this week’s deals to begin pricing.” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Firm
(INSIGHT: pub. December 2, 2011; 11:00a EST)
Municipal bonds traded with a firmer tone this morning amid a good amount of secondary activity for a Friday:

”There is a good amount of activity occurring this morning,” a trader said. “After the payrolls number came out we just starting seeing a good amount of buyers. We are trading a bit better as we move beyond this week’s supply and next week looks very manageable. Up front is clearly where most of the action is happening and probably the best" ...continued (Clients - See Full Report) FREE TRIAL

Weaker Out Long; Assured Review
(INSIGHT: pub. December 1, 2011; 3:30p EST)
Municipal bonds traded on a steeper yield curve today with losses out long while the final new-issues of the week closed accounts:

”Bonds maturing about 15-years and out were a little cheaper on the day,” a trader said. “That is a result of the bulk of this week’s supply maturing in that range and of course another sell-off in the Treasury market. We did note what we believe to be some of the December re-invest money going to” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots As Last Deals Price
(INSIGHT: pub. December 1, 2011; 11:00a EST)
Municipal bonds were little changed to cheaper in spots again today as Treasuries began the session much weaker:

”Another day of large losses in the Government market is not going to be ignored by municipals today,” a trader said. “We are clearly outperforming the Treasury market and that is changing the ratios picture again today but still a weaker tone is” ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary Prices Into Cheaper Market
(INSIGHT: pub. November 30, 2011; 3:30p EST)
Municipal bonds declined 10-years and out today under the weight of a large new-issue calendar and a swift sell-off in the Treasury market:

”With the long-bond off 2 points this afternoon it is hard to imagine municipal traders not paying attention,” a trader said. “The very long-end of the municipal curve is where we saw the worst performance with recently issued names like Mass Schools and Washington GOs in the 30-year spot trading in blocks of as much as” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Tone In Busy Morning
(INSIGHT: pub. November 30, 2011; 11:00a EST)
Municipal bonds were firmer up front but a weaker tone persisted 10-years and out today as the secondary and primary markets were quite active as COFINA closed the account with large bumps:

”There is a lot going on in the primary between most of yesterday’s deals now taking institutional orders and a several new issues that were not offered yesterday,” a trader said. “That, plus there is solid two-way flow in the secondary markets. The international news of the day and a large slate of economic data is forcing Govies cheaper and that is clearly impacting tax-exempt rates in that the intermediate and longer parts of the” ...continued (Clients - See Full Report) FREE TRIAL

Several Retail Order Periods In Primary
(INSIGHT: pub. November 29, 2011; 2:15p EST)
Municipal bonds traded in mixed fashion this afternoon while the new-issue market featured several deals priced for retail investors:

”It is a mixed bag from my perspective,” a trader said. “Treasuries were off early on and municipals felt a bit cheaper but with Govies coming back I think guys are starting to put more money to work. As a result I think it is generally unchanged but a” ...continued (Clients - See Full Report) FREE TRIAL

Weaker 10 Years & Out
(INSIGHT: pub. November 28, 2011; 3:30p EST)
Municipal bonds declined modestly today amid light secondary activity and an almost non-existent primary market:

”Municipal yields adjusted higher today in large part due to the lack of movement last week while Treasuries declined,” a trader said. “A lot of it also has to do with the new-issue market but my guess is that once deals start pricing Tuesday and Wednesday that people will realize how much money is looking to be put to work in our sector and tax-exempts will” ...continued (Clients - See Full Report) FREE TRIAL

Treasury Losses Weigh On Tax-Exempts
(INSIGHT: pub. November 28, 2011; 10:30a EST)
Municipal bonds were lightly traded but weaker 10-years and out today as losses in the Treasury market and pending supply took a toll on rates:

”Municipals outperformed Treasuries last week just by staying relatively unchanged and today we have another round of rather large losses in the Government market,” a trader said. “For a lot of traders that were out last week they turned on their screens this morning to a different market dynamic as far as ratios are concerned. We do have a decent” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Friday
(INSIGHT: pub. November 25, 2011; 12:00p EST)
Municipal bonds were very lightly traded and little changed today while Treasuries declined:

”There were no block trades until after 9:30 am today,” a trader said. “As of now I’m seeing a dozen or so. That really says it all. There are just not enough markets being made to develop a tone. Govies are off but that won’t impact our market until next week. ...continued (Clients - See Full Report) FREE TRIAL

Quiet Session
(INSIGHT: pub. November 23, 2011; 11:30a EST)
Municipal bonds were lightly traded and little changed today as the Thanksgiving holiday lull appears to have begun:

”It is hard to support any substantive changes to the scale today on such light trading but I’ll give it a shot,” a trader said. “We saw a few firmer blocks of high-grades around the 5- to 10-year range early on so perhaps it’s a few better up front. Out long, there is definitely more flexibility as accounts eye next week’s calendar and see a lot of” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Session Yet Firmer In Spots
(INSIGHT: pub. November 22, 2011; 12:30p EST)
Municipal bonds were lightly traded but a firmer tone was evident in the 10-year space today:

”For what is trading in the 5- to 10-year range, we see those bonds as slightly better bid,” a trader said. “Farther out the curve there is just so little happening and it is relatively unchanged. New deals for the most part appear to be doing well although UConn did have to” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Day
(INSIGHT: pub. November 21, 2011; 3:30p EST)
Municipal bonds posted minor gains today amid light trading as many of the week’s larger deals priced bonds in order to close accounts ahead of the holiday lull in activity:

”Absolutely the market is firmer,” a trader said. “The market made it through last week’s heavy supply calendar and supply has dropped off. The 30-day visible went from $14 billion to $6 billion. Mutual fund flows continue to be strong for tax-exempts and a lack of supply with elevated municipal-to-Treasury ratios should help” ...continued (Clients - See Full Report) FREE TRIAL

Several ROPs To Start Short Week
(INSIGHT: pub. November 21, 2011; 10:30a EST)
Municipal bonds traded with a firmer tone in spots today in sympathy with Treasuries:

”Dealer offerings have been bumped from last week’s levels and so far it looks as though some cash is being put to work,” a trader said. “Last week’s deals continue to trade up with the levels on Hawaii particularly glaring as that deal cheapened up so much last week. We are also seeing a lot of the” ...continued (Clients - See Full Report) FREE TRIAL

UConn Offers Bonds To Retail
(INSIGHT: pub. November 18, 2011; 11:30a EST)
Municipal bonds maintained the firmer tone from yesterday as the University of Connecticut offered bonds to retail investors:

”As the supply outlook drops off considerably, many accounts are buying in here even as Treasuries continue to weaken,” a trader said. “The big news I think is the inflows coming into mutual funds. We have now had two big weeks and that money is being put to work. This week’s deals continue to trade” ...continued (Clients - See Full Report) FREE TRIAL

Munis Improve Today
(INSIGHT: pub. November 17, 2011; 3:30p EST)
Municipal bonds firmed in the late morning and posted gains into the afternoon as Hawaii bumped levels after struggling earlier in the week:

”While the secondary did slow down in the afternoon, the better tone was evident as a lot of cash definitely came off the sidelines,” trader said. “As expected, we also saw a lot of the deals trade up in the Street, most notably names like” ...continued (Clients - See Full Report) FREE TRIAL

Further Cuts For Hawaii
(INSIGHT: pub. November 17, 2011; 10:30a EST)
Municipal bonds traded in mixed fashion with perhaps a firmer tone around the 10-year area but the long-end saw weaker prints early on:

”As we have mostly moved beyond the issuance this week – Hawaii the exception – the Street is seeing more constructive trades around the 10-year area,” a trader said. “However, we still see drift out long out but really that part of the curve is” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed In Big Primary Day
(INSIGHT: pub. November 16, 2011; 3:30p EST)
Municipal bonds were generally little changed today but a positive tone emerged as the market moved through new issues:

"Today was all about new-deals with the secondary playing second fiddle,” a trader said. “The tone was neutral from my perspective but as many of these bonds start to trade in the street, and likely trade up, it should act to instill confidence. Today we are little changed but the signs are much more” ...continued (Clients - See Full Report) FREE TRIAL

Another Large New-Issue Slate
(INSIGHT: pub. November 16, 2011; 10:30a EST)
Municipal bonds were little changed this morning as once again the focus is on the primary markets:

”A stronger Treasury market this morning helps plus we saw some deals do ok yesterday and that may bode well for the secondary,” a trader said. “Many deals were priced with concessions so how they adjust to the Street is clear and that is nothing new but still we are seeing a few trades today that look” ...continued (Clients - See Full Report) FREE TRIAL

Weaker With Large Primary
(INSIGHT: pub. November 15, 2011; 3:30p EST)
Municipal bonds declined as a large new-issue day weighed on the market:

”Throughout the entire day we saw dealers selling bonds at cheaper levels to make room for all the new-issues,” a trader said. “The levels on the day’s competitive loans were also, shall we call it, lackluster. Until we get beyond this supply there isn’t any positive direction for this market, unless of course we get another” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Start; Assured Review
(INSIGHT: pub. November 15, 2011; 10:30a EST)
Municipal bonds opened the trading day with a weaker tone once again:

”In the secondary markets we continue to see dealers shedding bonds ahead of supply,” a trader said. “There are a lot of bonds coming to market today and tomorrow and clearly there will be more value in the negotiated product, which is likely to be priced” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots As Ohio Accelerates Pricing
(INSIGHT: pub. November 14, 2011; 3:30p EST)
Municipal bonds declined on light trading today despite a firmer Treasury bid for most of the trading session:

”We see it cheaper 10-years and out today as the Street appears nervous about this week’s supply,” a trader said. “The very long-end probably traded the cheapest today as we saw a hefty amount of offerings out long and many hit some cheap bids before the day was out. Ohio had to give up a good amount more yield and I’m curious to see what happens” ...continued (Clients - See Full Report) FREE TRIAL

NYC Water, Ohio Price For Retail
(INSIGHT: pub. November 14, 2011; 10:30a EST)
Municipal bonds opened the week with a slightly cheaper trading tone while the new-issue market contained two large retail order periods:

”As was the case on Thursday, today we are trading a bit cheaper,” a trader said. “The rally on Wednesday still feels overdone and at these levels we just do not see the same type of interest. We have a lot of supply coming to market this week and a variety of different credits so there is still some concern on that but the reality is that” ...continued (Clients - See Full Report) FREE TRIAL

Despite Higher Yields a Return to “Normalcy”
(INSIGHT: pub. November 10, 2011; 3:30p EST)
Despite a rise to higher yields there were indications that the municipal industry was returning to “normal.” Municipal issuance was in excess of $34B, the largest month of non-BAB inflated issuance since June 2009. The 12-month total rose to $277B, slightly above the annual issuance average since 1988, and 2011’s total could reach ...continued (Clients - See Full Report) FREE TRIAL

Large Gains For Municipals
(INSIGHT: pub. November 9, 2011; 3:30p EST)
Municipal bonds posted large gains today in sympathy with Treasuries while the last new-issues of the week closed accounts:

”Municipals were well bid out of the gate but then there was supply to digest and that is still being worked through,” a trader said. “We are getting the sense thought that after next week, supply get’s real light and we could get a good stretch of performance in here, especially as the backdrop is turmoil on the” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Improve With Treasuries
(INSIGHT: pub. November 9, 2011; 10:30a EST)
Municipal bonds posted gains amid a busy secondary and primary market in sympathy with the rally in Treasuries this morning:

”There has been a lot of block trading this morning as strength in Treasuries pushed yields in the municipal market lower,” a trader said. “As has been the case for many months now, the best liquidity can be found around the 10-year area and as a result today it is leading gains. We are not seeing the gains of the Treasury market today but in 10-years we’ve seen some” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots
(INSIGHT: pub. November 8, 2011; 3:30p EST)
Municipal bonds were little changed to cheaper today while the primary markets offered plenty to digest:

”I think that the long-end was a few weaker today,” a trader said. “We saw some sellers of lower coupon bonds out long that were cheaper from yesterday and it seems that the Street was easily off-sides. We did note some interest in Build America Bonds today but the general market probably declined” ...continued (Clients - See Full Report) FREE TRIAL

Light Trading Session Ends With Few Changes
(INSIGHT: pub. November 7, 2011; 3:30p EST)
Municipal bonds were lightly traded with few changes of note today while U.S. Treasuries firmed as the day progressed:

”Some are making the case for gains out long today as Treasuries improved into the afternoon but on such light trading it seems to us more little changed than anything else,” a trader said. “A lot of accounts are going to wait for more new-issues to price but so far it looks like the TFA’s are seeing decent retail interest and Huntsville will likely” ...continued (Clients - See Full Report) FREE TRIAL

New York & Philadelphia Price For Retail
(INSIGHT: pub. November 7, 2011; 10:45a EST)
Municipal bonds were lightly traded this morning as the new-issue market featured two sizeable deals to start the week:

”There really isn’t much trading yet today to offer any clear direction,” a trader said. “The broader markets do not know what to make of the situation in Europe so there isn’t much movement there either. As for municipals, New York TFA levels look ok to start but the last time that name came to market wasn’t too long ago so I’m curious what the” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Afternoon
(INSIGHT: pub. November 4, 2011; 3:30p EST)
Municipal bonds were little changed to cheaper in spots to end the week despite a firmer Treasury market today:

”It was busy for a bit in the morning but activity was lackluster by the late morning and into the afternoon,” a trader said. “There were enough weaker prints earlier on to call it cheaper in spots and after that things just petered out so it is probably weaker on the day in spots. Supply next week is much more manageable but there are still about 12 dealers or so over” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed To Cheaper
(INSIGHT: pub. November 4, 2011; 10:45a EST)
Municipal bonds traded with a weaker tone in spots once again while next week’s supply picture looks much smaller than the last few days:

”We are still seeing dealers heavy and willing to part with recently acquired inventory at slight concessions,” a trader said. “There was actually a decent amount of high-grade names trading in the secondary for a Friday morning and it did paint a slightly cheaper picture. As Govies continue to firm up though we could end up little changed by the end of the day. Also, supply is much more” ...continued (Clients - See Full Report) FREE TRIAL

Weaker On The Day
(INSIGHT: pub. November 3, 2011; 3:30p EST)
Municipal bonds were lightly traded but declined 10-years and out today as Treasuries sold-off:

”Shorter bonds are holding their own as they generally have through this back and forth over the last month,” a trader said. “But the intermediate and long parts of the yield curve are clearly cheaper today. Secondary trading is light but there are enough prints to justify cuts to your scale Dealers, who have been leading this market of late, seemed somewhat lethargic today and burdened with the large amount of” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper To Open
(INSIGHT: pub. November 3, 2011; 10:45a EST)
Municipal bonds declined mostly today as a weaker Treasury market weighed o tax-exempts:

”Yesterday morning municipals withstood the sell-off in the Government pretty well and really only was slightly weaker in spots,” a trader said. “Today we are seeing weaker trades and a lot of dealers are full on this week’s primary calendar and you get the feeling that a lot of shops are willing to” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Tone Persists Into Afternoon
(INSIGHT: pub. November 2, 2011; 3:45p EST)
Municipal bonds were little changed to weaker today while Treasuries pared losses in the afternoon:

”This morning the market seemed flat to weaker and even as taxables made up ground in the afternoon, municipals continued to trade cheaper,” a trader said. “We moved so far so fast. It has been whiplash after whiplash these last couple of weeks so if broader markets can remain somewhat stable, municipals should settle in a little bit. We are still concerned that there isn’t much of a” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Open
(INSIGHT: pub. November 2, 2011; 11:00a EST)
Municipal bonds were little changed to cheaper this morning as Treasuries reversed course:

”There was nothing more to yesterday’s gains in municipals other than the extreme gains of the Treasury market,” a trader said. “There are no fundamental reasons as to why we should be rallying here given supply and how low absolute levels are. Retail isn’t a factor right here. As a result, with taxables backing off yesterday’s gains, there is a weaker” ...continued (Clients - See Full Report) FREE TRIAL

Large Gains
(INSIGHT: pub. November 1, 2011; 3:30p EST)
Municipal bonds improved today on the back of another strong day in Treasuries amid a very busy new-issue market:

”Tax-exempts were very well bid today,” a trader said. “The best performance was again around 10-years but really everything outside of 10-years did very well. The competitive loans once again fed into the general market rally but in some cases the coupon structure makes us wonder if the levels are” ...continued (Clients - See Full Report) FREE TRIAL

Large Gains This Morning
(INSIGHT: pub. November 1, 2011; 10:30a EST)
Municipal bonds rallied this morning in sympathy with Treasuries

”The high-grade market is better by as much as 10-basis points in the intermediate and long parts of the yield curve,” a trader said. “Right off the bat we saw dealer offerings bumped and all of a sudden there are not enough bonds around. There is a good amount of secondary” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Improve
(INSIGHT: pub. October 31, 2011; 3:30p EST)
Municipal bonds posted large gains today along with the Treasury market while Connecticut, a California entity and Delaware all priced bonds:

”In the late morning we saw some of the strongest trades of the day occur around the 10-year spot,” a trader said. “A few Maryland names along with some recently issued Virginia loans looked as much as 10 better than Friday close. Farther out the curve we also saw improvement but not to the” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Start As Primary Active Early
(INSIGHT: pub. October 31, 2011; 10:30a EST)
Municipal bonds improved this morning 10-years and out as Treasuries once again rallied to start the day:

”We greatly underperformed on Friday and with another round of gains in the taxables market, municipals are starting to wake up,” a trader said. “There has not been a ton of trading, but of the bumped offerings I see out in the Street, the ones that trade are clearly” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed as Connecticut Prices
(INSIGHT: pub. October 28, 2011; 3:30p EST)
Municipal bonds were little changed today as Treasuries made up some of yesterday’s losses:

”Treasuries are rallying today but not to the extent of the sell-off in that market yesterday,” a trader said. “Tax-exempts were hurting yesterday as Treasuries weighed us down but we still outperformed taxables. As a result, today we are just little changed, letting the ratios adjust and most are content to sit it out as there is light secondary activity. Next week we have a big calendar again so that” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Open
(INSIGHT: pub. October 27, 2011; 11:15a EST)
Municipal bonds traded with a weaker tone this morning as Treasuries sold off while a Massachusetts school deal upsized considerably:

”The [Treasury] long bond is 20-basis points cheaper than on Tuesday and munis really have not moved since then,” a trader said. “Dealers are cutting offerings all over the Street but we still are only a few cheaper. There are no large sellers and everything is happening in orderly fashion. Overall trading activity remains on the light side as I think a lot of accounts are sitting the morning out to see how” ...continued (Clients - See Full Report) FREE TRIAL

Ten Year Range Improves
(INSIGHT: pub. October 26, 2011; 3:30p EST)
Municipal bonds improved around the 10-year range during a busy primary day while Treasuries extended losses into the afternoon:

”The market has a firm tone to it,” a trader said. “We are being held back slightly by Treasuries, but there is definitely money being put to work. We see the market better by as much as 20-basis points at the moment. We were writing a bunch of retail-type tickets this morning but volume has slid into the afternoon.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Start In Spots
(INSIGHT: pub. October 26, 2011; 10:30a EST)
Municipal bonds opened slightly better as the last large issues of the week began pricing:

”There was definitely a bit of catch-up this morning as traders pressed the new ratios to Treasuries,” a trader said. “We greatly underperformed taxables yesterday and that seems to be the motivation for the strong block transactions we saw early on with a focus on the 10-year range. Still, it is not everywhere and with Treasuries backing off today and a ” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Tone Emerges In Afternoon
(INSIGHT: pub. October 25, 2011; 3:30p EST)
Municipal bonds were little changed to firmer today in sympathy with the rally in Treasuries:

”It was weaker this morning when Govies were going sideways and there was concern about supply,” a trader said. “But with Treasuries catching a bid post economic data and on news out of Europe, it helped to make the case for munis. It didn’t happen right away but as Treasuries extended gains the ratios looked very good and we started to see dealers able to move out of positions that had been” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Before Bulk Of Supply
(INSIGHT: pub. October 25, 2011; 10:30a EST)
Municipal bonds were lightly traded but with a weaker tone again this morning despite gains in the Treasury market:

”There is not much trading but enough to show that the Street is lacking confidence in the market right now,” a trader said. “Even as Treasuries took off later in the morning, municipals are unwilling to follow as supply looms. The competitive loans today could provide some indication of where we stand but the size of the deals” ...continued (Clients - See Full Report) FREE TRIAL

Very Light Street Activity; Pa Turnpike Prices
(INSIGHT: pub. October 24, 2011; 3:30p EST)
Municipal bonds were very lightly traded today but a weaker tone prevailed in the afternoon:

”The market does feel cheaper out there today in spots,” a trader said. “There is not a whole lot going on but whatever you are buying is definitely coming at levels somewhere between 1- and 3-basis points cheaper. We are seeing a few names in particular like” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. October 24, 2011; 10:30a EST)
Municipal bonds were little changed to firmer this morning as the Pennsylvania Turnpike Authority priced bonds for retail investors:

”Trading is sparse but we saw some firmer blocks get put away the 10-year area at what looked to be firmer levels from Friday’s close,” a trader said. “This week’ supply has no enormous deals but there are over 15 deals over $100 million in size so there will be a lot to pick through. Until we start seeing” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper To End Week
(INSIGHT: pub. October 21, 2011; 6:00p EST)
Municipal bonds were little changed to slightly weaker today:

”Munis had a bit of a heavier tone today amid light trading,” a trader said. “With Treasuries continuing to trail off, it weighs on municipals. There wasn’t much trading today and that was the bottom line; people were content to sit on the sidelines. Next week’s supply is not as heavy but there are plenty of sizeable deals out there to follow.” ...continued (Clients - See Full Report) FREE TRIAL

Light Trading As New Hampshire Sells To JPM
(INSIGHT: pub. October 20, 2011; 3:30p EST)
Municipal bonds were lightly traded and generally little changed with a weaker tone in spots as New Hampshire sold bonds in the competitive market:

”If you want to call the general market on a strong bid for a $100 million competitive loan you can go ahead and do that but from our perspective, municipals were slightly cheaper overall today,” a trader said. “Even with Treasuries bouncing back, we see the overall market weaker as we continue to see dealers cut offerings and willing to take” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Tone
(INSIGHT: pub. October 20, 2011; 10:30a EST)
Municipal bonds were little changed to slightly cheaper this morning:

”There is more unease once again that this market will not be able to sustain a bid,” a trader said. “Even though we rallied on Tuesday, it seems that was not a general market process but more a few players pushing things around. Overall, there remains a lack of retail interest at current levels and while some are still playing ratios, that trade has” ...continued (Clients - See Full Report) FREE TRIAL

Primary Offers Two Billion Dollar Sales
(INSIGHT: pub. October 19, 2011; 3:30p EST)
Municipal bonds were little changed today in light secondary activity as the new-issue market was dominated by two large sales:

”Today we just had zero follow-through from yesterday’s move, which makes me somewhat suspicious of how far we really moved on Tuesday, “ a trader said. “I’m not sure it was a broad market move or a just few select players getting active. Either way, today the trading was mixed and light as most watched the Cal and New York deals.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes To Start The Day
(INSIGHT: pub. October 19, 2011; 11:15a EST)
Municipal bonds were little changed this morning while California and Hudson Yards priced billion dollar deals to institutional investors:

”With Treasuries backing up yesterday and today providing little guidance, municipals are not continuing this grind to lower yields,” a trader said. “There are a good amount of bumped offerings out there that just aren’t seeing the bids they did yesterday. I think bid/ask spreads are widening out but the reality is that” ...continued (Clients - See Full Report) FREE TRIAL

Strong Despite Fade In Treasuries
(INSIGHT: pub. October 18, 2011; 3:30p EST)
Municipal bonds posted large gains in the intermediate portion of the yield curve today despite an afternoon sell-off in Treasuries:

”There was an early grab for bonds that was extended with the strong bids on the competitive loans,” a trader said. “The 10-year area remains the most actively traded and in some cases gains just outside of 10-years were as much as 9- or 10-basis points. The sell-off this afternoon in” ...continued (Clients - See Full Report) FREE TRIAL

Strong Start To Large New-Issue Day
(INSIGHT: pub. October 18, 2011; 10:30a EST)
Municipal bonds gained again this morning as the primary heats up:

”The secondary started off with good two-way flow and a lot of activity that I would call constructive,” a trader said. “There are just a lot of buyers coming off the sidelines at these new levels and the strong start to Govies also helped. So far the new-issues appear to be” ...continued (Clients - See Full Report) FREE TRIAL

Modest Gains Today
(INSIGHT: pub. October 17, 2011; 3:30p EST)
Municipal bonds posted modest gains today in sympathy with Treasuries while California and a Louisiana hospital offered bonds to retail investors:

”Secondary activity picked up in the late morning and by the early afternoon there was decent liquidity especially in the intermediate part of the curve,” a trader said. “It seems the buy-side is willing to pay up a bit on bumped dealer offerings and that led to good follow through on” ...continued (Clients - See Full Report) FREE TRIAL

Firmer As California Prices For Retail
(INSIGHT: pub. October 17, 2011; 10:30a EST)
Municipal bonds traded with a slightly better tone this morning as California offered almost $2 billion bonds to retail investors:

”There isn’t that much trading yet but the tone is clearly firmer in sympathy with Treasuries,” a trader said. “Cal is offering more yield today than it did last month but that is largely due to the overall correction since then as well as the fact that Cal spreads have widened somewhat ahead of this deal. We expect it to do” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Tone To End Week
(INSIGHT: pub. October 14, 2011; 3:30p EST)
Municipal bonds declined today but outperformed the Treasury market as the secondary quieted down this afternoon:

”This morning and into the early afternoon the Street was somewhat weaker,” a trader said. “But it was not throughout the entire market as we saw new-deals trade up on many occasions. With Treasuries off like this and looking at another robust new-issue week to come, many accounts were comfortable lightening up for the weekend.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper
(INSIGHT: pub. October 14, 2011; 10:30a EST)
Municipal bonds declined modestly in sympathy with the Treasury market this morning:

”Well, if you look at how most of the new deals are trading to where they sold this week you’d think the market was rallying but the reality is most negotiated product was price to go this week as there continues to be overall uncertainty in our market right now,” a trader said. “No one wants to get caught holding too much. Today we are” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Areas
(INSIGHT: pub. October 13, 2011; 5:00p EST)
Municipal bonds firmed today as Treasuries rallied while the final large new-issues of the week came and went:

”Municipals started seeing strong buying interest yesterday, but with Treasuries off significantly the market was slightly lower,” a trader said. “Today with support from the Treasury market, we see municipals better by 2- to 4-basis points. The morning felt a little grabby and today’s deals seem to be doing very well but we have quieted a bit around lunchtime.” ...continued (Clients - See Full Report) FREE TRIAL

Washington Comes To Market
(INSIGHT: pub. October 13, 2011; 11:00a EST)
Municipal bonds were little changed to even firmer in spots as Treasuries rallied this morning:

”This week we have definitely felt more stable at adjusted levels but the Government market continued to weigh on tax-exempts,” a trader said. “With a strong open in Treasuries today there is more confidence in municipal space. That, plus we have also made our way through the bulk of the week’s supply. One note of caution to that storyline though is that” ...continued (Clients - See Full Report) FREE TRIAL

Weaker; Review of Harrisburg
(INSIGHT: pub. October 12, 2011; 3:30p EST)
Municipal bonds declined today amid supply and the Treasury market but still many said the overall tone has improved from last week:

”We are slightly cheaper today, the sell-off from last week has abated and it was probably a little overdone,” a trader said. “Investors are taking down new-issues this week and deals are being accelerated and closed. Secondary market activity is ok to slightly weaker but compared to last week we have a better tone.” ...continued (Clients - See Full Report) FREE TRIAL

Big New-Issue Day
(INSIGHT: pub. October 12, 2011; 10:30a EST)
Municipal bonds declined slightly as supply and another round of losses in the Treasury market pressured tax-exempts:

”Supply and the move in Govies over the last week is really impacting our market,” a trader said. “We are still getting reads on the new deals but it does seem like there is pressure from all sides. We aren’t much cheaper, just a few basis points along the curve, but clearly the” ...continued (Clients - See Full Report) FREE TRIAL

Several Retail Order Periods
(INSIGHT: pub. October 11, 2011; 3:30p EST)
Municipal bonds were generally little changed today despite a sell-off in Treasuries while the new-issue market offered several retail order periods:

”This is still a buyer’s market here, don’t get me wrong, but still we aren’t down like Govies are today,” a trader said. “From I can tell, there is a better tone, a better bid-side to the market, but it is not an aggressive force that is moving things. Instead, guys are going to play it” ...continued (Clients - See Full Report) FREE TRIAL

Catholic Health Prices For Retail
(INSIGHT: pub. October 11, 2011; 10:30a EST)
Municipal bonds were lightly traded to the start the week while Catholic Health Initiatives kicked off the primary slate with a retail offering:

”Secondary activity is muted this morning while we watch the Government market continue to sell-off,” a trader said. “On Friday it looked like we were approaching stability with even a good amount of firmer trades put on by cross-over accounts. Still, with another round of Treasury losses this morning there continues to be uncertainty as to where tax-exempts are headed. So far today we” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper But Buyers Emerge
(INSIGHT: pub. October 7, 2011; 3:30p EST)
Municipal bonds declined today with the Treasury market however buyers did begin to emerge at adjusted levels into the afternoon:

”Overall the market still feels queasy in here,” a trader said. “Supply is a bit bigger than some thought with a lot of Washington GOs coming. But today we did have a few instances of some better trades. It seems like cross-over money and that makes sense given where we are right now. Still, overall the market has not” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper Yet Again
(INSIGHT: pub. October 7, 2011; 10:30a EST)
Municipal bonds declined once again today as did Treasuries:

”The weaker Government market is more of a factor today than heavy inventory,” a trader said. “We are not going to right the ship with Treasuries bleeding like this. Next week we have another big week of supply but I think at these adjusted levels the primary should be more successful in placing bonds. Still, we continue to see cheap prints on” ...continued (Clients - See Full Report) FREE TRIAL

Correction Continues
(INSIGHT: pub. October 6, 2011; 3:30p EST)
Municipal bonds posted large losses once again as new-issues also struggled and Treasuries sold off:

”Today the main theme in the Street was dealers continuing to lighten inventory at still cheaper prices,” a trader said. “It led to another correction with the emphasis in the 10-year range. By the afternoon though we started to see trading lighten up and it looks like dealers worked through some big blocks. The primary was once again a bit of a” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper Again
(INSIGHT: pub. October 6, 2011; 10:30a EST)
Municipal bonds cheapened significantly again today as did Treasuries:

”The Street is under pressure,” a trader said. “It is not like we are seeing a wave of motivated sellers or anything like that – in fact the par bids-wanteds on Bloomberg yesterday was around $550 million so that is nothing tremendous. Instead the Street just feels very heavy with recent new-issues and a lot of dealers are trying to” ...continued (Clients - See Full Report) FREE TRIAL

Tax-Exempts Sell Off
(INSIGHT: pub. October 5, 2011; 3:30p EST)
Municipal bonds sold off today under the weight of a struggling new-issue market plus a much weaker Treasury market:

”The belly of the curve seems to be significantly weaker as supply weighs on the market,” a trader said. “Dealers seem to have all the inventory they want and individual investors ponder absolute yields. We see the market cheaper by as much as 10- to 15-basis points in the belly and 7- to 10-basis points out long.” ...continued (Clients - See Full Report) FREE TRIAL

Waiting On Deals
(INSIGHT: pub. October 5, 2011; 10:30a EST)
Municipal bonds were little changed to cheaper today as the primary continues be the focus:

”I’d say we are waiting on new-issue right now,” a trader said. “We have two large competitive loans and a few deals moving into institutional orders that we have yet to see. The market is pretty much what I could call fractured. Dealers are just selling any inventory and the prices vary widely. It definitely makes for a cheaper tone but so far" ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary Leads To Cheaper Levels; Review of Dexia
(INSIGHT: pub. October 4, 2011; 3:30p EST)
Municipal bonds were generally weaker today as the day’s primary calendar struggled for the most part and the larger competitive loans came at wider spreads compared to recent trading levels:

”The secondary trading had been all over the place today so I think you really have to look at the primary,” a trader said. “And the primary hasn’t been so pretty. A lot of deals re-priced cheaper and the competitive loans did not get the aggressive bids we’ve seen for most of this year. Instead the spreads looked wide to recent levels.” ...continued (Clients - See Full Report) FREE TRIAL

New Issue Focus
(INSIGHT: pub. October 4, 2011; 10:30a EST)
Municipal bonds were lightly traded and generally little changed to weaker as the new-issue market takes center stage:

”The tone of the market right now is tepid,” a trader said. “People are somewhat fearful here with all the supply coming and just with macro issues influencing all markets. I don’t see a lot of sellers out there, but whatever money is in the wings is waiting on new-issues. I have seen some money managers selling a lot of shorter paper in the last few sessions as well.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes to Weaker; Tribes & Oklahoma Price
(INSIGHT: pub. October 3, 2011; 3:30p EST)
Municipal bonds were little changed to weaker on parts of the curve despite a rally in Treasuries:

”At this point most investors are sizing up the coming supply so I’d say we are generally flat with light trading,” a trader said. “That being there has continued to be some dealers willing to hit cheaper bids on recent deals, which has led to a weaker tone in the 5- to 15-year range. It is in that area we are seeing the cheaper prints. I think out long it is more little changed as we watch” ...continued (Clients - See Full Report) FREE TRIAL

Tribes Price For Retail
(INSIGHT: pub. October 3, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasury bonds posted large gains again:

”Today I am seeing more inquiry than what we saw on Friday with the Treasury rally but still it seems that a few dealers are still having trouble moving last week’s competitive loans and are willing to hit cheaper bids,” a trader said. “We have another week of decent supply and people have got to be thinking they need to make room. Still, the ratios look appealing here with a” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Mixed As Treasuries Rally
(INSIGHT: pub. September 30, 2011; 3:30p EST)
Municipal bonds traded in mixed fashion today while the Treasury market rallied the entire session:

”We definitely saw a good amount of weaker trades out to 15-years or so but some firmer ones out long as that is where the long bond is performing the best,” a trader said. “We did not have the sellers today that we’ve had this week and overall it has been quiet as we end the quarter. Next week supply will be the focus again and as we continue to have decent issuance weeks the market seems to be” ...continued (Clients - See Full Report) FREE TRIAL

Munis Can't Keep Up With Treasury Rally This AM
(INSIGHT: pub. September 30, 2011; 10:30a EST)
Municipal bonds were little changed to only slightly firmer in spots this morning while Treasuries rallied:

”We are performing marginally at best,” a trader said. “Everyone wants to sell into any strength right now but in municipals there is just little interest to add bonds at the end of the month and quarter. Plus we have a decent calendar next week again so that is keeping a lot of traders on the sidelines.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper Today
(INSIGHT: pub. September 29, 2011; 8:30p EST)
Municipal bonds were slightly weaker in spots today as quarter-end approaches:

”Even with a firmer Treasury market today I think the events of Tuesday and Wednesday have eroded overall confidence in the tax-exempt market,” a trader said. “There are a few larger deals with noticeable balances from the week’s negotiated and primary slate and I think some are trying to lighten the load ahead of the end of the quarter.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper To Start
(INSIGHT: pub. September 29, 2011; 10:00a EST)
Municipal bonds were again trading cheaper but this morning the losses were not to the same extent as the last two trading sessions:

”It did feel like the bottom fell out yesterday in municipals and underwriters had a hard time getting deals placed,” a trader said. “It is hard to tell if it is much better out there today as we’ve seen a good amount of cheaper trades but there are a few one-off trades that look stronger like this Cal GO trade in 2041. Sellers are not as prevalent this morning but there still appear to be a good amount of” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper Again
(INSIGHT: pub. September 28, 2011; 1:00p EST)
Municipal bonds declined once again as secondary selling pressure mounts and new-issues struggled to close accounts:

”Offerings in the secondary are still showing a lot of flexibility and the volume of bids-wanteds is high once again,” a trader said. “With Treasuries off a good amount we are seeing more and more secondary sellers with a lot more focus on the 10-year range while yesterday it was more out long. Yesterday was pretty sloppy and today it feels the same way but not” ...continued (Clients - See Full Report) FREE TRIAL

municipal market stumbled along
(INSIGHT: pub. September 27, 2011; 4:00p EST)
The municipal market stumbled along with the Treasury sector. The recent tax-exempt weakness has propelled the MMA municipal price index to a negative condition for the 4th time since the advance began in mid-April. Secondary selling increased, though some of the activity may have been associated with new issues. Nonetheless, the surge to more than 62% above the average for the 3 months of June to August, is a factor of note. ...continued (Clients - See Full Report) FREE TRIAL

Primary Heats Up
(INSIGHT: pub. September 26, 2011; 12:00p EST)
Municipal bonds were little changed to cheaper in areas today as the new-issue market offered several different names:

”We already saw one major dealer cutting secondary offerings from the get-go this morning, which I think is them making room for competitive loans that are coming this week,” a trader said. “Another round of Treasury losses is also weighing on the market. We’ve seen cheaper trades on high-grades out long but also some of the” ...continued (Clients - See Full Report) FREE TRIAL

NYC Offers Bonds; Thoughts On "Super Committee"
(INSIGHT: pub. September 23, 2011; 3:30p EST)
Municipal bonds showed mild gains 15-years and out today but secondary quieted down as New York City offered bonds to retail investors:

”We still see some follow through from yesterday on the long-end so I think it is safe to say it’s firmer beyond 15-years, but farther in the curve the market is more little changed,” a trader said. “This morning it started off fairly busy but thinks are tapering off now that we are headed into Friday afternoon.” ...continued (Clients - See Full Report) FREE TRIAL

Municipal bonds rallied today
(INSIGHT: pub. September 22, 2011; 3:30p EST)
Municipal bonds rallied today as the Treasury market continued its impressive moves meantime the last new-issues of the week generally lowered yields before closing accounts:

”It could be better by as much as 20-basis points in some areas, it is hard to quantify as always,” a trader said. “It is all Treasury and ratio-based. It really just came out of nowhere. We went from a lot of bonds out there and the ability to buy anything you wanted at the beginning of the week to now where you can’t buy anything. There are not big sellers out there because who is going to sell into this as we are such a” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Rally With Taxables
(INSIGHT: pub. September 22, 2011; 10:30a EST)
Municipal bonds greatly improved this morning with the best performance out long as the secondary saw good two-way flow:

”The secondary is pretty busy today,” a trader said. “High-grade cash is up as much as 12-basis points out long, maybe more. Up front the market isn’t seeing as much follow through but today we are rallying 10-years and out for sure. California and Massachusetts are trading”

High-grades improved 5- to 12-basis points this morning, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Munis Improve With Busy Primary; Bank Downgrades
(INSIGHT: pub. September 21, 2011; 3:30p EST)
Municipal bonds gained today with the best performance out long after the Fed announcement this afternoon:

”The entire yield curve has been firmer today by a few basis points with a firmer Treasury and good response to the new-issues,” a trader said. “After the Fed announcement though and the rally in the 30-year I think the municipal long-end is up even more. Dealer offerings out there have been bumped and we are starting to see more and more inquiry that will likely”

*High-grades improved 2- to 6-basis points with the best performance 20-years and out, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Mass & Ohio Set To Sell
(INSIGHT: pub. September 21, 2011; 10:30a EST)
Municipal bonds were little changed in secondary trading as the new-issue market offered a large selection:

”It is pretty quiet out there in the Street but the primary is busy,” a trader said. “Most deals are getting done and investors are embracing several lower-rated names inside of 10-years to pick up the yield in a little-yield market. The levels on Mass and Ohio should be firm.”

*High-grades were little changed this morning, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Firmer; Cal & Salts Close Account
(INSIGHT: pub. September 20, 2011; 3:30p EST)
Municipal bonds showed modest gains as California closed the account:

”The market is not rallying or anything like that but we are certainly well bid today,” a trader said. “A lot of stuff has been trading through recent offering levels. New deals did generally well today. The supply this week is geographically diverse and away from Cal, you don’t have that many large deals so everything seems digestible. Also, there remains cash that wants to be” ...continued (Clients - See Full Report) FREE TRIAL

New Issues Begin Pricing Process
(INSIGHT: pub. September 20, 2011; 10:30a EST)
Municipal bonds were little changed this morning while the primary kicked into gear:

”There have been a few block trades out long that show a firmer bid,” a trader said. “But overall this market is really unchanged and lightly traded ahead of supply. Cal and Salts priced for institutions with no major changes but there is” ...continued (Clients - See Full Report) FREE TRIAL

Unch To Firmer In Spots
(INSIGHT: pub. September 19, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots today as California and the Salt River Project offered bonds to retail investors:

”Municipals are generally not going to follow Treasuries right here,” a trader said. “The taxable market has been back and forth for weeks now. The absolute levels are so low that I don’t think we can budge much lower, especially with so much" ...continued (Clients - See Full Report) FREE TRIAL

Little Changed To Firmer In Spots
(INSIGHT: pub. September 19, 2011; 10:30a EST)
Municipal bonds improved slightly out long this morning in sympathy with the Treasury rally:

”Even with all this supply coming, you can’t ignore the rally in Treasuries,” a trader said. “It is not like we are seeing huge two-way flow representing gains in high-grades but still we saw dealer bumps offerings a bit and some on the buy-side are biting at the new levels especially out long. The good reception to Cal on” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots; Solid Day One For California
(INSIGHT: pub. September 16, 2011; 3:30p EST)
Municipal bonds were little changed to cheaper in spots today as California found sold retail support for day one:

”Cal seems to be finding good interest, and that is at fairly tight spreads,” a trader said. “As of 2:30 pm we hear the number is now $415 million put away to retail on that deal. Still, there is concern about another week of decent issuance so some dealers look to be” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker; Cal Prices For Retail
(INSIGHT: pub. September 16, 2011; 10:30a EST)
Municipal bonds were slightly weaker in spots this morning once again while California priced bonds for retail investors:

”We have not seen a Cal GO deal this year so the spreads look tighter than when the state last came to market,” a trader said. “But we still don’t know what it will take to really clear this deal, and where it clears will be the real level so we’ll see. Outside of that, we are seeing some cheaper prints up front in the” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots
(INSIGHT: pub. September 15, 2011; 3:30p EST)
Municipal bonds declined today as Treasuries sold off:

"I thought the competitive loans were still somewhat aggressive given how Treasuries are doing and how we’ve seen such an uptick in negotiated product,” a trader said. “Still, they weren’t the levels we saw previously. How they trade in the Street will be” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Tone Ahead of Competitive Market
(INSIGHT: pub. September 15, 2011; 10:30a EST)
Municipal bonds opened with a weaker tone today ahead of three large competitive loans:

”We are a bit weaker today with the Treasury losses,” a trader said. “I think these competitive loans should tell the market how weak we really are. We are also seeing sellers in the very short-end of the curve - around the 5-year spot – and that is the first time I ...continued (Clients - See Full Report) FREE TRIAL

Slightly Cheaper
(INSIGHT: pub. September 14, 2011; 3:30p EST)
Municipal bonds were slightly weaker today as supply and secondary selling pressure influenced high-grades:

”Clearly the supply is impacting levels,” a trader said. “We saw deals price in a bit of concession and still some had to cut levels to get things done. We saw a few larger bids-wanteds as well, which did not help.”

”Just looking at new issues freeing up to trade in the Street showed a weaker market,” a trader said. “We have not seen this type of primary in over” ...continued (Clients - See Full Report) FREE TRIAL

Big Primary Day; Review Of Administration Plan
(INSIGHT: pub. September 13, 2011; 12:00p EST)
Municipal bonds were mixed today while Treasuries declined:

”New issues are generally seeing strong investor interest but with a weaker Treasury market the muni secondary is seeing mixed results,” a trader said. “The competitive loans on the day did well, which is to be expected as that has been the trend the entire year. We are not seeing much” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start As Wisconsin Hospital Prices
(INSIGHT: pub. September 12, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”The offerings are slim and we have yet to see anything start up yet,” a trader said. “We’ve seen a few bids-wanteds out there but nothing out of the ordinary. With no major move in other securities markets and few deals priced yet we are steady.”

”We have a lot of deals coming this week,” a trader said. “Probably more than what we’ve seen in over a month so that will be the theme all week. My guess is that it will adjust overall levels” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed; Tobacco Anyone?
(INSIGHT: pub. September 9, 2011; 10:30a EST)
Municipal bonds were little changed today while next week’s calendar grows:

”We are sideways at this point and there are few offerings out there to really get a sense of things,” a trader said. “The calendar is larger next week with a lot of the Cal names that people have been talking about. Still, the municipal market has no incentive to really move this way or the other.”

Turning to credit, yesterday Moody’s Investors Services concluded its review of tobacco bonds, which resulted in a downgrade of 60 tranches in 13 securitizations that affects about $17 billion outstanding bonds and an upgrade of ...continued (Clients - See Full Report) FREE TRIAL

Munis Gain In Spots
(INSIGHT: pub. September 8, 2011; 3:30p EST)
Municipal bonds gained in spots as Harris County and New York State bumped levels before closing accounts:

”Most of the deals were well received today but we are going to see an uptick in supply next week,” a trader said. “Volatility in other market has become the norm so municipals just keep plugging along as the ratio play continues to work for a lot of cross over’s and retail has to” ...continued (Clients - See Full Report) FREE TRIAL

Unch To Firmer
(INSIGHT: pub. September 8, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots this morning as Harris County and the New York State Thruway Authority priced bonds:

”One day Treasuries are selling off and the other they are rallying,” a trader said. “The day-to-day volatility isn’t really affecting municipals as we just continue to slowly grind higher. We saw some stronger trades in 10-years and again around 30-years but the” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes In Face Of Treasury Losses
(INSIGHT: pub. September 7, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots today as Treasuries lost ground:

”Even with pressure from Treasury losses, municipals high-grades continued to trade little changed to better in spots,” a trader said. “We saw strong prints on Montgomery County again MIT’s out long and the Henrico County deal from yesterday. Sellers were not” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes; PITs Price For Retail
(INSIGHT: pub. September 7, 2011; 10:30a EST)
Municipal bonds were little changed to even firmer in spots while Treasury bonds sold-off early in the session:

”Even with Treasuries off a good clip today the ratios still look appealing and we still don’t have much supply,” a trader said. “New issues that do come continue to get strong investor interest and that is keeping this train going. I think if Treasuries continued to sell off this week it will impact our market but for that we’ll have to wait and see.” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Rally With Treasuries
(INSIGHT: pub. September 6, 2011; 3:30p EST)
Municipal bonds rallied with Treasury bonds today while Cape Coral found strong retail support:

”The market is on a roll,” a trader said. “There is no indication that securities are moving anywhere but higher and the ratios are stupid cheap at this point. New issues so far this week are finding real support and we are entering a new month and there appears to be cash. Montgomery County bonds were cleared in large numbers around 10-years and we saw big prints again on New York paper out long.” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Improve With Taxables
(INSIGHT: pub. September 2, 2011; 10:30a EST)
Municipal bonds posted gains today while Treasury bonds rallied on the labor report:

”There have been some remarkable trades,” a trader said. “Some long, high-grade prints on New York waters, Columbia’s – they really showed big jumps. It is cross-over buyers that have continued to play a role in our market of late. There has been dealer inventory hanging around and today some ” ...continued (Clients - See Full Report) FREE TRIAL

Steady Day
(INSIGHT: pub. September 1, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today:

”High-grade continue to move evenly today, if they are moving at all,” a trader said. “Tomorrow’s employment number is keeping most accounts on the sidelines because with such little activity the volatility of a surprise number will be larger.” ...continued (Clients - See Full Report) FREE TRIAL

The Month Begins Slowly
(INSIGHT: pub. September 1, 2011; 10:30a EST)
Municipal bonds were little changed this morning:

”We’ve seen a few cross-over trades of size late yesterday and a few this morning but outside of that I see very little going on,” a trader said. “One cross-over put away long PITs and Emory University bonds last night but this morning we aren’t seeing as much of that. Instead it is pretty quiet and unchanged at this point.” ...continued (Clients - See Full Report) FREE TRIAL

Lightly Traded With Strong Bids On Comp Loans
(INSIGHT: pub. August 31, 2011; 3:30p EST)
Municipal bonds were little changed today while two high-grade competitive loans received strong bids:

”There was little trading activity today and the back and forth of the Treasury market didn’t really affect municipals,” a trader said. “There were strong bids on the two competitive loans. Those issuers benefitted from an overall lack of supply but also in some part to the standings that some of the dealers care about. Still, I don’t think strong bids on these deals reflected an” ...continued (Clients - See Full Report) FREE TRIAL

Competitive Loans The Focus
(INSIGHT: pub. August 31, 2011; 10:30a EST)
Municipal bonds were little changed this morning:

”It is the lack of attendance, the lack of new issues, its month-end, look I’m trying to find every excuse out there as to why nothing is happening,” a trader said. “We’ve got no buyers and the only ones that want to sell are dealers. The market is just locked up right now. The two competitive loans will be centered around two or three dealers,” a trader said. “I don’t think smaller shops can” ...continued (Clients - See Full Report) FREE TRIAL

Mute Response To Treasury Rally
(INSIGHT: pub. August 30, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed:

”There were some firmer prints early on today on big names but that didn’t hold out,” a trader said. “New issues look a bit cheap, even though there is very little supply this week and I think that is indicative of the overall tone in the market right now.” Hedging municipal holdings is ...continued (Clients - See Full Report) FREE TRIAL

Few Changes At Open
(INSIGHT: pub. August 30, 2011; 10:30a EST)
Municipal bonds were little changed today while the primary remained light although some block trades of marquee names were observed early on:

”The muni market is trading sideways with very light volume,” a trader said. “These are truly the dog days of summer.”

”The Government market is well up today but yesterday it was selling off,” a trader said. “There are light flows across most markets right now and this exacerbates volatility. We did see blocks of Georgia’s, Maryland’s, Utah’s, PITs and Wisconsin GOs trading this morning. The levels all looked to confirm that” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Session
(INSIGHT: pub. August 29, 2011; 3:30p EST)
Municipal bonds were little changed to weaker amid very light trading:

”Today we saw little trading in the secondary markets and few deals priced in the primary markets,” a trader said. “As a result the high-grade market was little changed to weaker in spots even while Treasuries sold off hard.”

”There has been a good amount of buzz about Cal GOs,” a trader said. “In general we are going to finally see some Cal GOs come to market and we will also see a few other Cal credits in the market in September. As a result we are seeing” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet Open
(INSIGHT: pub. August 29, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning while Treasury losses mounted:

”With the holiday approaching, very little issuance scheduled and the hurricane over the weekend, the Street is seeing very little trading activity so far today,” a trader said. “Govies are selling off so I suspect we will see weakness in the municipal market as we appear to have come to a turning point. Last week it started to get a little sloppy. A lot of offerings have been uniformly cut based on” ...continued (Clients - See Full Report) FREE TRIAL

Unch To Weaker
(INSIGHT: pub. August 26, 2011; 3:30p EST)
Municipal bonds were little changed to weaker today:

”Quiet market today despite the gains in the Treasury market,” a trader said. “We are entering the very slow period of the summer and don’t expect much for another few weeks until all these California issues start piling up.” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet; Weaker In Spots
(INSIGHT: pub. August 26, 2011; 10:30a EST)
Municipal bonds were little changed to weaker this morning:

”Despite a gain in the Treasury market, the municipal high-grade market feel pretty steady, if not weaker in spots,” a trader said. “Selling pressure has been a factor plus levels here just are not finding real interest. Bonds aren’t getting put away. Lightly trading today is expected to continue next week with the holiday approaching and very, very limited supply.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker
(INSIGHT: pub. August 25, 2011; 3:30p EST)
Municipal bonds declined amid light trading while Treasuries improved:

”The market is lightly traded but the truth is that there is a weaker tone despite gains in the Treasury market,” a trader said. “The competitive loans are seeing very large cover bids, which shows that the dealer community is all over the place and generally apprehensive. We’ve see a few large bids-wanteds today, a $100 million list from a money manager plus another” ...continued (Clients - See Full Report) FREE TRIAL

Even To Start
(INSIGHT: pub. August 25, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasury markets improved:

”The gains in the Government market are keeping further losses at bay,” a trader said. “We were clearly were looking a bit dire yesterday with the selling pressure and with what buyers were willing to pay in the primary markets. Today that isn’t the case.” ...continued (Clients - See Full Report) FREE TRIAL

Weaker As Many Deals Struggle
(INSIGHT: pub. August 24, 2011; 3:30p EST)
Municipal bonds declined in sympathy with Treasuries as several new-deals were forced to raise yields significantly to attract interest:

”I can’t say I’ve seen a lot of sellers but I’ve definitely seen new-issues struggle today,” a trader said. “There are a lot of pages of bids-wanteds but nothing too overwhelming. It is more a factor of the Treasury market. Also, we’ve come a long way and clearly accounts aren’t buying – literally- where levels are right now.” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Again
(INSIGHT: pub. August 24, 2011; 10:30a EST)
Municipal bonds traded with a weaker tone again this morning while Treasuries also declined:

”The market feels a bit shaky in here,” a trader said. “Accounts are standing off a bit as the absolute levels are so low. Although we’ve been trading generally sideways this week, another session starting with Treasury weakness does not bode well for municipals. We’ve had at least one issuer call off a competitive loan based on market conditions” ...continued (Clients - See Full Report) FREE TRIAL

Weaker In Spots
(INSIGHT: pub. August 23, 2011; 3:30p EST)
Municipal bonds were slightly weaker today amid a relatively busy primary session:

”The secondary continues to have a weaker tone, especially for bonds outside of 10-years,” a trader said. “It is really hard to tell though because it is overall quiet. Some dealers have marked down positions but others appear to be unch.” ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary
(INSIGHT: pub. August 23, 2011; 3:30p EST)
Municipal bonds traded with a weaker tone this morning amid several retail order periods in the primary:

”We are seeing some decent sized bids-wanteds, nothing huge but enough to cause some hesitancy in the high-grade market this morning,” a trader said. “Prints on North Carolina’s, Georgia’s and Montgomery County GOs around the 10-year area were a bit weaker than we thought. That is a surprise as the front-end of the curve has held in pretty steady in the last few weeks.” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet Trading Session
(INSIGHT: pub. August 22, 2011; 3:30p EST)
Municipal bonds were little changed and lightly traded today as King County priced sewer revenue bonds:

”If you want to sell something today you have to hit a bid,” a trader said. “The market is extremely quiet and unchanged from my perspective. North Carolina’s in 2019 went away through the scale but TFA’s looked wider in 2017 – it has been that kind of day with no real tone.” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet Start
(INSIGHT: pub. August 22, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning while a weaker Treasury market may be having some impact on tax-exempt offerings to start the week:

”On Friday there was definitely a mixed to weaker tone in the high-grade market and with this morning starting out with a weaker Government market, we see most dealer offerings being cut,” a trader said. “Still there is not definitive tone yet as trading remains light. Some of the levels on King County look a bit cheaper today compared to Friday’s retail scale as well and that is not” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Friday
(INSIGHT: pub. August 18, 2011; 10:30a EST)
Municipal bonds were little changed and lightly traded this morning:

”There isn’t much flow today,” a trader said. “The same was true yesterday and frankly most of this week. Next week’s calendar looks light again and we will likely be at the will of the broader taxable market.” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Improve
(INSIGHT: pub. August 17, 2011; 3:30p EST)
Municipal bonds posted large gains today in sympathy with the Treasury market while the last large issues of the week closed accounts:

”Buyer attention is definitely focused on the new issues,” a trader said. “But we are definitely better in Street trading as a result of the Treasury rally. I think the best performance has been in the 10-year range. The secondary is not seeing a ton of stuff going on though. We have seen a few mutual funds using this market as an opportunity to move bonds that they couldn’t before but that is to be expected. High-yield paper is not” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Improve With Treasury Rally
(INSIGHT: pub. August 17, 2011; 10:30a EST)
Municipal bonds improved this morning but still greatly underperformed the rally in the Government market:

”With such a strong start to Treasuries, the muni market is seeing strength,” a trader said. “The biggest trades showing the largest gains are around the 10-year area with names like Maryland and Utah trading up. But really it is up and down the curve today. A lot of stale offerings are finding interest early on as well. So far new deals have done fairly well although growing expectations of California paper coming to market in the next month may be having an influence.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. August 16, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”There isn’t much activity to report at this point,” a trader said. “While there is a firmer bid in Treasuries, high-grade municipals are just not seeing any activity so far. We have seen of a few recent competitive loans trading tighter yesterday and today such as Montgomery County but that isn’t indicative of the entire market.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes Of Note
(INSIGHT: pub. August 15, 2011; 1:00p EST)
Municipal bonds were lightly traded and generally little changed today as price talk on new issues circulated but few deals were actually priced:

”Trading flows have been very light so far today,” a trader said. “I think we still have some customer inquiry up front but little block trading has occurred. “Price talk on a few deals is circulating and really this week’s price action will be determined on the limited primary and whether or not we see more volatility in the Government market. I think if we see a build-up in supply though the current low absolute” ...continued (Clients - See Full Report) FREE TRIAL

Still Weaker Out Long Despite Taxable Gains
(INSIGHT: pub. August 12, 2011; 3:30p EST)
Municipal bonds saw continued interest for short high-grades bonds while the longer parts of the yield curve declined again to end a volatile week:

”Municipals lost some ground in the intermediate and longer parts of the yield curve today,” a trader said. “Yet we did see some accounts buying in the 5- to 10-year range at levels that indicated little changed to even firmer. It was mostly shorter high-grade names like North Carolina or Wake County so I think lower-rated paper still struggled somewhat today.” ...continued (Clients - See Full Report) FREE TRIAL

Weaker At Open
(INSIGHT: pub. August 12, 2011; 10:30a EST)
Municipal bonds declined this morning while Treasuries opened stronger:

”Despite a stronger Treasury market, municipals are seeing a lot of weaker prints,” a trader said. “That is especially happening out on the long-end but that is happening to a certain extent as well up front. Selling pressure has dissipated but we are still seeing money managers getting rid of a lot lower-rated paper.” ...continued (Clients - See Full Report) FREE TRIAL

Muni Curve Steepens As Taxables Sell Off
(INSIGHT: pub. August 11, 2011; 3:30p EST)
Municipal bonds traded on a steeper curve with gains up front but losses out long as the Treasury market sold-off dramatically:

”There was a strong bid on the Florida competitive loan that was structured all inside of 10-years,” a trader said. “But even before that loan sold we saw better flow up front and a pretty strong bid for high-grades inside of 10-years. Farther out though, the large losses in the Treasury market have long bond muni traders a bit skittish. The ratios still look appealing but it is hard to be constructive when” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. August 11, 2011; 10:30a EST)
Municipal bonds demonstrated a firmer tone in spots this morning while the Government market declined:

”The positive thing in municipals right now is that we are still very cheap to Treasuries,” a trader said. “So we are a bit firmer despite weaker Treasuries. Outside of 10-years we are only a few better but the bid for bonds 8-years and in is really aggressive. It is a grab fest for short bonds. By the end of the day we could be” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Rally
(INSIGHT: pub. August 10, 2011; 3:30p EST)
Municipal bonds posted strong gains today in sympathy with Treasuries while several large deals priced:

”The cross-over buyers came back into the market today and were involved especially around the 10-year area and again out long buying high-grade blocks,” a trader said. “It helped to instill confidence in the market. A rally like this in Treasuries is hard to ignore and the ratios are very enticing.” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Open
(INSIGHT: pub. August 10, 2011; 10:30a EST)
Municipal bonds improved this morning as broader market volatility continues:

”There was one large trade in particular of Maryland’s in 2020 from the recent deal that printed today at a very strong level,” a trader said. “Now you have to ask yourself: can one guy move the market? If you work some benchmark producers that is probably enough but it is a better bet to wait and see if there is follow through. Clearly the strength in Treasuries this morning is making for a firm bid but” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed To Weaker After PM Turnaround
(INSIGHT: pub. August 9, 2011; 3:30p EST)
Municipal bonds declined modestly 10-years and out today but a mid-afternoon Fed announcement reversed broader market action and shored up muni losses:

”After the Fed announcement most of the muni offerings were bumped,” a trader said. “So far people are not hitting those but that is more that no one wants to be the first one in. Earlier in the day we were cheaper by 1- to 3-basis points but after the market change it is” ...continued (Clients - See Full Report) FREE TRIAL

Quiet; Weaker In Spots
(INSIGHT: pub. August 9, 2011; 10:30a EST)
Municipal bonds remained lightly traded but today showed a penchant for weakness as Puerto Rico priced bonds to retail investors:

”Even as the ratios look very appealing, the municipal market remains paralyzed,” a trader said. “The bid/ask spreads are very wide and there is a general disagreement in the Street over where the market is headed. There have been a few cheaper prints 10-years and out that are leading some to call it a few cheaper while others are keeping their scales and offers unch to” ...continued (Clients - See Full Report) FREE TRIAL

Mixed
(INSIGHT: pub. August 8, 2011; 3:30p EST)
Municipal bonds traded in mixed fashion in the first full trading day since Standard & Poor’s downgraded U.S. long-term credit:

”There were a few early bids-wanteds from certain dealers and accounts looking to lighten up but then there are others that see this as an opportunity,” a trader said. “As a result we see the market mixed, with bids on Washington and Wisconsin GOs looking cheaper than yesterday. We see Montgomery County bonds from last week’s competitive loan at about even with Friday but then we still see some lower-rated revenue bonds trading up. It’s a crap shoot out there today with no real defined tone.” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet To Start
(INSIGHT: pub. August 8, 2011; 10:30a EST)
Municipal bonds were lightly traded this morning in response to Standard & Poor’s decision to downgrade U.S. long term debt:

”There is no response to Friday’s announcement but the market does seem less liquid,” a trader said. “There is a lot of chatter but zero price action related to the downgrade. We will have to wait and see what develops but with a very light new-issue calendar I think price discovery will be difficult this week.” ...continued (Clients - See Full Report) FREE TRIAL

Rally Comes To A Halt
(INSIGHT: pub. August 5, 2011; 3:30p EST)
Municipal bonds were very lightly traded and little changed today as Treasuries sold off:

”There was zero leadership today,” a trader said. “The bid/offer spreads widened out significantly and no one was willing to really budge. We saw few large trades of note and most were content to pack it in for the week.” ...continued (Clients - See Full Report) FREE TRIAL

Light Response To Employment Numbers
(INSIGHT: pub. August 5, 2011; 10:30a EST)
Municipal bonds were little changed in response to this morning’s labor report:

”As can be expected when you see a Government market move like this on a Friday, munis are little changed and lightly traded,” a trader said. “Even with a sell-off in Treasuries, the ratios still look appealing but the momentum has clearly been lost today. With so few bonds coming to market next week, I think municipals will continue to be subject to” ...continued (Clients - See Full Report) FREE TRIAL

Virginia Sells To JPM As Market Rallies
(INSIGHT: pub. August 4, 2011; 3:30p EST)
Municipal bonds rallied today amid good two-way flow in secondary markets while the final deals of the week closed accounts:

”This type of rally in Treasuries is impossible to ignore under any conditions but this is coming at a time when municipals lagged Treasuries last week and we continue to have limited supply,” a trader said. “So we really moved a good amount today with the 10-year area and the 30-year area doing the best. We also saw a large amount of block sized trades out there. We saw more than I’d say we’ve seen all year. It almost felt like 2006 again. Institutional leadership was clearly at play.” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Again; Virginia Colleges Set To Sell
(INSIGHT: pub. August 4, 2011; 10:30a EST)
Municipal bonds gained again as did the Treasury market:

”It really is the same story here all week as Treasuries continue to rally,” a trader said. “For those interested in ratios, it is a good trade. For those working for retail accounts, there is money and few bonds around. These are major factors influencing our market right now. The Virginia competitive loan will get a very good reception.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Rally Again
(INSIGHT: pub. August 3, 2011; 3:30p EST)
Municipal bonds rallied today and outperformed Treasuries while the new-issue market was generally well received:

”We lagged other markets for a while and that is clearly propelling municipals forward but the number one influence that I see is that there is a lot of money out there and not enough bonds to go around,” a trader said. “We have not had much issuance in the last two weeks and I don’t see anything large scheduled. The 30-day visible is pretty low. As a result we are seeing dealers moving out of their” ...continued (Clients - See Full Report) FREE TRIAL

Montgomery To JPM & Citi
(INSIGHT: pub. August 3, 2011; 10:30a EST)
Municipal bonds started the day strong again as two high-grade competitive loans were aggressively bid:

”The levels on Montgomery look through where we had the triple-A curve at the end of the day yesterday,” a trader said. “Also the relative value players are out in force again, especially 10-years and out where the ratios remain compelling.” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Rally
(INSIGHT: pub. August 2, 2011; 3:30p EST)
Municipal bonds rallied today with the Treasury market:

”Today has been an opportunity to bring out your bonds and sell them for a lot of dealers weighed with balances,” a trader said. “Municipals have largely stood still and badly underperformed the Treasury market in the last week so the ratios are very compelling and buyers are” ...continued (Clients - See Full Report) FREE TRIAL

NYC TFA & Buenaventura Price Into Strong Market
(INSIGHT: pub. August 2, 2011; 10:30p EST)
Municipal bonds showed large gains 10-years and out this morning as the week’s limited primary issuance began:

”There have been some very strong prints in the intermediate and longer parts of the yield curve today in a continuation of what we saw starting yesterday afternoon,” a trader said. “With yet another round of Treasury gains the relative value players are out in full force as municipals have underperformed for some time now.” High-grades improved ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Improve With Taxables
(INSIGHT: pub. August 1, 2011; 3:30p EST)
Municipal bonds gained today along with the Treasury market:

”I think it is very firm out there with the ratios looking attractive and Treasuries up again,” a trader said. “We are probably underperforming the Government market but still I think it is firmer than the 2- to 3-basis point we are hearing from a lot of shops. I see Harvard’s trading up 14 through my scale, North Carolina GOs going away 6 through and Maryland 5s of 2020 offered 11 better than where they sold last week. The market is ...continued (Clients - See Full Report) FREE TRIAL

Quiet Out Of The Gates
(INSIGHT: pub. August 1, 2011; 10:30p EST)
Municipal bonds were little changed this morning while Treasuries opened stronger:

”The market for high-grades has not been able to keep up with the Government market so far today,” a trader said. “Most stock offerings have been uniformly marked up with the Treasury advance but so far no one is chasing bonds. As far as block size balances are concerned, they are in strong hands between the larger dealers in the Street and no one is giving anything away.” ...continued (Clients - See Full Report) FREE TRIAL

DC stalemate continues to paralyze
(STRATEGIST: pub. July 29, 2011; 3:30p EST)
The DC stalemate continued to paralyze the tax-exempt market’s distribution process which is heavily dependent on retail investors. As a result, balances from primary loans over the past 10 days are weighing heavy on the dealer community. Fortunately, there has not been a penal recognition of the poor distribution extent in evaluations to meaningful higher yields. However, the inability to experience appreciable gains while Treasuries have attracted a strong bid at month-end has frustrated risk management processes and made the month-end more difficult. The absence of positive price momentum and the anxiety surrounding the debt deal and non-support of the August historical bias is ...continued (Clients - See Full Report) FREE TRIAL

simply a continuation of the same
(STRATEGIST: pub. July 26, 2011; 3:30p EST)
There is simply a continuation of the same. Muted issuance and activity as dealers attempt to mitigate risk ahead of next week. Over the past 12 months pessimism regarding the world economy and in recent weeks the fate of the US, has contributed to the ascension of gold prices. Meanwhile only in 2011, has the US Treasury improved benefitting, despite the looming “tipping point,” from the perception that the US bond market remains deep and relatively stronger than all ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Ignore Taxable Weakness
(STRATEGIST: pub. July 25, 2011; 3:30p EST)
Municipal bonds were little changed and lightly traded as a Texas school district and Maryland sold bonds:

”There was a moment when Treasuries came off the lows of the day and we started to see somewhat of a constructive tone for municipals but really that faded quickly as govies backed off later on,” a trader said. “Dealers are still contending with large balances on the last month’s competitive loans but I don’t think that will stop the high-grade market from improving this week as overall issuance is” ...continued (Clients - See Full Report) FREE TRIAL

Maryland Prices For Retail
(STRATEGIST: pub. July 25, 2011; 10:30a EST)
Municipal bonds were little changed as Treasuries sold off early: ”There seems to be some tidying of positions this morning and we did see a money manager with a few pieces out for the bid early on but nothing too large,” a trader said. “Some trades on the competitive balances of the last month reflect reality, versus where they were bid but there is a battle for the top competitive spot so that trend is likely to continue this week with Maryland’s. Overall the market is” ...continued (Clients - See Full Report) FREE TRIAL

municipal market remained firm
(STRATEGIST: pub. July 22, 2011; 3:30p EST)
The municipal market remained firm with the assistance of a recovering Treasury market. The latter’s volatility continue to create ambiguity in the tax-exempt sector despite the continued positive flow of assets into the municipal bond funds. The $100M MD GO ( cited at risk of a potential loss of AAA should the US debt be downgraded) appeared to be priced reflective of its historical premium credit position in the market. The loan was priced at 2.68% in ‘21, lower than both MMA’s benchmark median curves. The spread suggested that ...continued (Clients - See Full Report) FREE TRIAL

Ambiguity remained the pervasive theme
(STRATEGIST: pub. July 21, 2011; 3:30p EST)
Attention was again on the municipal primary market, with one eye focused in Berlin and EU talks and the other on DC’s budget negotiations. Ambiguity remained the pervasive theme. Solid corporate earnings continued and US equities remained strong led by the $29B Medco purchase. The $266M L.A. GO loan simply reflected more of the same as large dealers priced competitive GO loans with 5% structures (offering greater flexibility for institutional investors). Issuers have benefitted all week from the current aggressive levels and willingness of larger firms to accommodate them. Crossover buyers are in a better ...continued (Clients - See Full Report) FREE TRIAL

primary issuance led by WA and WI GO competitive loans
(STRATEGIST: pub. July 20, 2011; 3:30p EST)
Attention was on primary issuance led by 2 state GO competitive loans—WA and WI. The issues contained 5% coupons which suggested structure to facilitate TOB activity. Citigroup was the leading TOB creator in 1H11. The competitive process remains a key component to price discovery. The 2 loans were respectively +10 and +16 bps to MMA’s 5% coupon median benchmark. The 18 bps spread between MMA’s 5% and par benchmark reflected an advantageous environment for issuers this week. ...continued (Clients - See Full Report) FREE TRIAL

municipal market remained restrained
(STRATEGIST: pub. July 19, 2011; 3:30p EST)
The municipal market remained restrained despite the surge in the Treasury and equity markets after an indication of possible progress on debt-ceiling. However, the Senate originating bill is expected to face a stiff challenge in the House where “tea party” resolve is strongest. Moody’s announcement of placing 5 “Aaa” states on “review,” especially MD which is selling this week, could well disrupt the municipal market’s mechanism’s for price discovery. ...continued (Clients - See Full Report) FREE TRIAL

Financial Markets Displayed Apprehension
(STRATEGIST: pub. July 18, 2011; 3:30p EST)
With only 12 trading sessions remaining until August 2, the debt ceiling deadline, the financial markets displayed apprehension. US equities declined while Treasury yields rose. Municipal issuers appear to be taking advantage of the stability of yields at advantageous levels in order to capture attractive yields before a potential crisis is fact. The current spread between MMA’s median par benchmark and Barclay’s municipal index is 6 bps, below average, and only 6 bps from an extreme that has suggested issuers were in the ...continued (Clients - See Full Report) FREE TRIAL

Quiet End To Week
(INSIGHT: pub. July 15, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed to finish the week:

”The day began with a mixed tone but honestly there was more drift than anything else in my opinion,” a trader said. “Clearly next week’s calendar is weighing on the minds of traders and it is making for much more flexibility on the offer side.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed
(INSIGHT: pub. July 15, 2011; 10:30a EST)
Municipal bonds traded in mixed fashion as supply next week grows:

”Munis are lightly traded but we aren’t seeing any clear tone in any direction,” a trader said. “The supply picture next week is definitely part of that as we have over 15 deals scheduled over the $100 million mark, which” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Day for Municipals
(INSIGHT: pub. July 14, 2011; 3:30p EST)
Municipal bonds were little changed today as the government market declined once again:

”Today municipals were fairly lethargic,” a trader said. “We had yet another round of Government losses and today municipals were unable to ignore it. Trading really has been dead and the week’s deals are trading in the Street but not really determining much of a tone. Next week we are starting to see a pretty sizeable competitive calendar so that will be interesting to watch.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes To Start
(INSIGHT: pub. July 14, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning while Treasuries declined once again:

”The municipal market is steady to start today,” a trader said. “That is really based on a lack of overall activity in the secondary markets and we are waiting on the deals to free up. There was a decent block of Georgia GOs in 2024 that actually looked a bit cheap to where it last traded so that provided some hesitancy for intermediate traders.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Firmer In Spots
(INSIGHT: pub. July 13, 2011; 3:30p EST)
Municipal bonds were little changed to firmer today as the final deals of the week closed accounts:

”While the bids on each high-grade competitive loan looked strong compared where those bonds have recently traded in the Street, the overall market was less willing to outperform taxables today,” a trader said. “We still did outperform but we were really only a few better in spots versus the Treasury sell-off that eventually reversed direction.” ...continued (Clients - See Full Report) FREE TRIAL

PECOs; Charleston To BoA-ML
(INSIGHT: pub. July 13, 2011; 10:30a EST)
Municipal bonds were lightly traded this morning but with a firmer tone to start:

”Once again the high-grade market appears be finding support across the curve despite a weaker Treasury market,” a trader said. “The activity has been light as traders await details on the competitive loans. We aren’t starting out as aggressively as yesterday but I think the signs are there that we will end up with decent gains again today.” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Outperform Treasuries
(INSIGHT: pub. July 12, 2011; 3:30p EST)
Municipal bonds gained today even though Treasuries did not while the largest deals of the week priced bonds:

”The ratios to taxables look very appealing across the curve so that is why the bid was there despite the Government market not doing much by the end of the day,” a trader said. “Treasuries moved a lot over last night and I think guys came in and decided to make a move. We did see a lot of strong trades around 5-years by” ...continued (Clients - See Full Report) FREE TRIAL

Another Firmer Open; Large Primary Slate
(INSIGHT: pub. July 12, 2011; 10:30a EST)
Municipal bonds gained today as the major deals of the week began pricing:

”The primary is taking center stage today and early on we are hearing good things on several of the deals,” a trader said. “Early bids on the morning’s offerings looked firmer, especially around the 15-year spot. We expect the 10:30 bid-lists to find real interest as well.”

High-grades improved 2- to 4-basis points, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Michigan, MTA Price Into Firmer Tone
(INSIGHT: pub. July 11, 2011; 3:30p EST)
Municipal bonds improved today but greatly underperformed the rally in Treasuries while the new-issue market found good investor interest to start the week:

”The strength in Treasuries is really the deciding factor today,” a trader said. “That, plus this market is getting decidedly more constructive with so little supply in the last few weeks. This week we see an uptick but still it’s nothing this market can’t digest and after some of the bids we’ve seen in the secondary, clearly there is a need for paper. We underperformed obviously but still there was as consistent bid out in the Street today that led to gains.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Open
(INSIGHT: pub. July 11, 2011; 10:30a EST)
Municipal bonds firmed this morning in sympathy with Treasuries:

”High-grades are definitely better today with the taxable market,” a trader said. “If you are a high-grade buyer and you can stomach the current ratios, this is a good spot to get in. Sellers are sparse and we don’t have any bids-wanted pieces over $2 million so far today.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Tone
(INSIGHT: pub. July 6, 2011; 3:30p EST)
Municipal bonds traded in mixed fashion today while the new-issue market found strong investor support:

”A stronger Treasury market once again definitely helped municipals out today,” a trader said. “Still, we are seeing dealer moving product from recently issued deals at sometimes cheaper levels. We also had a few sellers out long today but those blocks received decent bids given that the high-grade market has cheapened a good clip in the last two weeks or so. Today there was clearly more inquiry. While the high-yield sector definitely improved, I’d say high-grades were little changed to better by a basis point or two in spots and the opposite in others.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet To Start
(INSIGHT: pub. July 6, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed once again to start the trading session:

”We are still not seeing that much activity but with the Government market stronger again we see tax-exempts in a better light,” a trader said. “The prints are not overwhelmingly firmer or anything like that but we are just seeing a lot more interest in blocks that last week were just sitting there.” ...continued (Clients - See Full Report) FREE TRIAL

Stable
(INSIGHT: pub. July 5, 2011; 3:30p EST)
Municipal bonds were very lightly traded and little changed today as a bid in the Government market did instill some confidence in municipals:

”Trading activity, issuance, you name it, was quiet today,” a trader said. “But we did see some constructive activity in spots and that is encouraging as we move forward. There is just no supply. We’ve gone through a correction in the last week and finally the Government market has legs – so there is clearly some optimism that our market will stabilize but today the lack of activity was the story more than anything else.” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Again To Start Month
(INSIGHT: pub. July 1, 2011; 11:00a EST)
Municipal bonds were little changed to weaker today amid light trading:

”The story this week was that we had the 30-year Treasury bond sell off 30-basis points and munis outperformed pretty well,” a trader said. “Yes we weakened each session but not to the extent of the Government market. The dealers do feel heavy right now but with very little calendar next week and really for the rest of July from what I can see, I’m actually” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Decline Again
(INSIGHT: pub. June 30, 2011; 3:30p EST)
Municipal bonds declined today as an early sell-off in Treasuries set the tone for the day:

”Starting at about the 10-year marker and out we saw the largest losses,” a trader said. “Don’t get me wrong, it is not a huge sell-off, but we are looking at losses in the 3- to 6-basis points range. Treasuries have sold off every day this week if feels like and finally munis are starting to really feel the pressure. We also saw some of those Georgia bonds come out and the prints justified how” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker Open
(INSIGHT: pub. June 30, 2011; 10:30a EST)
Municipal bonds were lightly traded but with a weaker tone again in step with Treasuries:

”Ahead of the long weekend we are not going to see much trading but we are starting to see weaker prints on the names that are trading,” a trader said. “The long-end looks to be the most offered at this point today so that could take a bit of a beating if we see” ...continued (Clients - See Full Report) FREE TRIAL

Weaker For Third Straight Session
(INSIGHT: pub. June 29, 2011; 10:30a EST)
Municipal bonds declined modestly for a third straight day as Treasuries sold-off while the final issues of the week priced bonds:

”As was the case yesterday, we began the session with a somewhat hesitant tone as traders were unsure what to make of the Treasury market,” a trader said. “But then we just saw more and more high-grade trades indicating losses, especially around 10-years. One dealer offering Georgia GOs and New York PITs with significant” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker As Treasuries Fade
(INSIGHT: pub. June 27, 2011; 3:30p EST)
Municipal bonds were slightly cheaper today as Treasuries extended losses into the afternoon:

”We are a bit cheaper but definitely not seeing similar losses to what we have going on in Treasuries today,” a trader said. “We had a pretty decent bids-wanted with a lot of short-call paper out earlier in the day but the bids on those blocks looked fine. When you have such big losses in” ...continued (Clients - See Full Report) FREE TRIAL

Gwinnett Prices For Retail
(INSIGHT: pub. June 27, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasuries were weaker:

”Municipal high-grades are not moving in any direction this morning,” a trader said. “There has not been enough trading to justify it and we don’t see that many offerings to choose from either. Even with Treasuries weaker, I think many could see the Government market moving on everything that is happening in Greece this week so traders will wait for that. Supply is decent for what really is a short week so that could also be problematic but for now we are just in wait and see mode.” ...continued (Clients - See Full Report) FREE TRIAL

Steady Friday
(INSIGHT: pub. June 24, 2011; 11:15a EST)
Municipal bonds were lightly traded and little changed this morning:

”We still see very little secondary activity outside of tobacco bonds,” a trader said. “The high-grade market is stalled right here and with next week shortened and the quarter-end approaching we don’t expect there to be much price discovery. The calendar next week looks thin as well so steady levels are likely to remain for a while here.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes; Florida to Sell
(INSIGHT: pub. June 23, 2011; 10:30a EST)
Municipal bonds were little changed this morning as Treasuries advanced:

”We saw more trading today but the high-grade paper really is not going anywhere so far,” a trader said. “High-yield product is tightening though as customers continue to look to put more into their portfolios. Georgia’s are still not trading and frankly a lot of this week’s deals are not moving around too much.” ...continued (Clients - See Full Report) FREE TRIAL

Even On The Day
(INSIGHT: pub. June 22, 2011; 3:30p EST)
Municipal bonds were little changed today along with Treasuries while balances from many of this week’s deals remain:

”There wasn’t that much to talk about today,” a trader said. “Trading activity really didn’t continue to pan out after some early block trades in the morning. The day’s deals looked fine and Treasuries are pretty even now so that didn’t lend to anything of note. The only thing that was interesting was that we didn’t see much trading on the week’s deals and there are balances there so that might have people a bit weary.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes To Firmer
(INSIGHT: pub. June 22, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots as Treasuries also gained modestly:

”We are seeing more activity today than we did earlier in the week but levels are generally even,” a trader said. “We did see a few firmer prints around 15-years or so and you could make the case for improvement there but overall we are waiting for Georgia’s to free up and see where they head.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Tone
(INSIGHT: pub. June 21, 2011; 3:30p EST)
Municipal bonds traded in mixed fashion in a day marked by two sales, one in the primary and one in the secondary:

”It feels like there is not much else going on in the high-grade markets outside of the Georgia deals and the long bids-wanted,” a trader said. “Georgia levels looked strong in spots leading some to bump levels around 15-years but some of the trades and follow-through on the long bonds out of that list didn’t” ...continued (Clients - See Full Report) FREE TRIAL

Markets Waits On Georgia Loans
(INSIGHT: pub. June 21, 2011; 10:30a EST)
Municipal bonds were little changed ahead of a series of large Georgia competitive loans:

”The secondary is very quiet as the primary takes the front seat today between not only Georgia but several other of the week’s larger sales,” a trader said. “The high-grade market will likely grind a bit higher today based on Georgia but I question how relevant that bid is to wider market conditions. Yield will likely see spreads” ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary; Quiet Secondary
(INSIGHT: pub. June 20, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today while several new-deals began the pricing process:

”There were some firmer prints on a few high-grade bonds like Utah or PECOs in the 10-year range but really activity was very modest today,” a trader said. “So some are making the case for improvement but most large players are waiting to see how Georgia fares tomorrow.” ...continued (Clients - See Full Report) FREE TRIAL

Several ROPs to Kick Off Week
(INSIGHT: pub. June 20, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”Even though the Government market started off stronger, municipals didn’t really respond,” a trader said. “Now that Treasuries backed off there is even less conviction. The primary will be the most important aspect of our market for the first half of this week especially with Georgia GOs selling competitive tomorrow.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet With Few Changes
(INSIGHT: pub. June 17, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning and little changed:

”Next week we see a dip in supply although the Georgia competitive loans will be interesting to watch,” a trader said. “Could be Princeton all over again. This morning we are not seeing much activity. Its little changed at this point and doesn’t look to be going anywhere else.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Firm With Taxables
(INSIGHT: pub. June 16, 2011; 3:30p EST)
Municipal bonds improved today 10-years and out in sympathy with Treasuries while the last deals of the week priced:

”The market is quiet but firm,” a trader said. “We are being buoyed by the move in Treasuries. We see the scale today better by 2- or 3-basis points with a two-day move of 4- to 5-basis points.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Firmer To Start
(INSIGHT: pub. June 16, 2011; 10:30a EST)
Municipal bonds traded with a firmer tone this morning:

”I’m seeing it firmer by 1- to 3-basis points in the shorter end and maybe a touch more farther out but it’s not overwhelming,” a trader said. “There just is not deep interest. I think these high-grade deals yesterday would have struggled a bit without the move in Treasuries. But really, not that much because Princeton was going to” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Better In Sympathy With Treasuries
(INSIGHT: pub. June 15, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots today as the rally in Treasuries and afternoon interest in the primary market moved high-grades:

”In the morning, even with a decent gain in Treasuries, the muni high-grade market still looked flat to cheaper – there just didn’t seem to be much interest and a lot of deals were cutting levels,” a trader said. “But the bid on Princeton’s, which was totally political and had nothing to do with fundamentals of the” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes To Start
(INSIGHT: pub. June 15, 2011; 10:30a EST)
Municipal bonds were little changed ahead of triple-A Princeton University’s competitive sale:

”Municipals are little changed to start today as we have Los Angeles water selling to retail and Princeton selling shortly,” a trader said. “I think most accounts will wait to see how that deal fares before getting too involved. A turnaround in the Government market is also a help.” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Decline
(INSIGHT: pub. June 14, 2011; 3:30p EST)
Municipal bonds declined today but greatly outperformed a Treasury market that sold off early; meantime most large deals of the week began the pricing process:

”Tax-exempts appeared to be doing ok for a while there but the losses in Treasuries are forcing weakness in municipals,” a trader said. “On top of that, there is a lot of supply coming today and a lot of triple-A names. Still, we are seeing some lower-rated debt continue to tighten. The high-grade market needs to adjust but in the meantime I think there are” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker
(INSIGHT: pub. June 14, 2011; 10:30a EST)
Municipal bonds were slightly weaker as Treasuries sold off this morning:

”It is difficult to ignore such a big swing in the Government market,” a trader said. “Plus today we are seeing many more deals pricing. I think we are only off by a few basis points in the secondary but we could see more of a slide as trading picks up.”

High-grades were little changed to weaker by 1- to 3-basis points 10-years and out, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. June 13, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning:

”We have another good week of issuance but so far we haven’t seen any of it,” a trader said. “Trading is light and there isn’t much happening just yet.”

High-grades were little changed, traders said. ...continued (Clients - See Full Report) FREE TRIAL

Quiet End To Week
(INSIGHT: pub. June 10, 2011; 3:30p EST)
Municipal bonds were very lightly traded this afternoon and levels remained generally unchanged:

”The Street had a moment where it looked like we were going to get a lot of business done but by noon things really quieted down,” a trader said. “The strength in Treasuries encouraged some reaching by accounts but that was not the norm. The norm today was pretty much unchanged as dealers moved product around.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start to Friday
(INSIGHT: pub. June 10, 2011; 10:30a EST)
Municipal bonds were little changed this morning:

”The market is very quiet but the gains in the Government definitely help our positions over the weekend,” a trader said. “The high-grade market is little changed but once again we have a big week of issuance coming up. And by big, its big for this year, not the last ten.” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes By Day's End
(INSIGHT: pub. June 9, 2011; 3:30p EST)
Municipal bonds were little changed today as the Government market declined and the last new-issues of the week closed accounts:

”As Treasuries faded into the afternoon the activity in the secondary came to a halt,” a trader said. “We started off with a few big block trades showing gains but that really ended as the day progressed. The new-deals did well today but that is no surprise.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Open
(INSIGHT: pub. June 9, 2011; 10:30a EST)
Municipal bonds were lightly traded but with a firmer tone while the last large deals of the week priced:

”There was a big trade on North Carolina GOs in 2019 that was a bit through yesterday’s levels and we continue to see more follow-through from yesterday’s deals,” a trader said. “Trades on Baltimore and Boston bonds out long are up and we are also seeing solid interest in a lot of the” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots; Primary Well Received
(INSIGHT: pub. June 8, 2011; 3:30p EST)
Municipal bonds remained lightly traded but did show modest improvement in sympathy with Treasuries:

”I think municipals are struggling a bit here but the market is still probably better by 1- to 2-basis points mostly in sympathy with the Treasury market and absent any significant selling,” a trader said. ...continued (Clients - See Full Report) FREE TRIAL

Another Busy New-Issue Day
(INSIGHT: pub. June 8, 2011; 10:30a EST)
Municipal bonds were little changed as Treasuries advanced; meantime the primary market was the busiest it has been all week:

”While yesterday the market was definitely softer, today munis have not taken off in a direction,” a trader said. “The primary is active and that is drawing the most attention. A stronger Government market also helps. The bids on Florida PECOs should be strong and could end up bolstering the high-grade market.” ...continued (Clients - See Full Report) FREE TRIAL

Primary Does Well Despite Weaker Tone
(INSIGHT: pub. June 7, 2011; 3:15p EST)
Municipal bonds were lightly traded and despite a good reception to the day’s primary offerings, the secondary continued to show weakness:

”The market is taking a much needed breather,” a trader said. “Everyone is talking up the large coupon/redemptions of June and July but sometimes those do not push the market lower. A lot of investors bought in May when valuations and ratios were more attractive. New issues are still getting done well, but secondary activity remains” ...continued (Clients - See Full Report) FREE TRIAL

Primary Offers Plenty
(INSIGHT: pub. June 7, 2011; 10:30a EST)
Municipal bonds traded with a slightly weaker tone 10-years and out today along with Treasuries while the tax-exempt new-issue market offered plenty:

”With another day of softness in the Government market and continued talk of the week’s large primary, municipals are seeing some weaker trades in the Street,” a trader said. “It is not overwhelming and offerings are not too much to handle but it just seems to be the case more often than not that a trader will let” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. June 6, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed as the new-issue market is expected to pick up tomorrow:

”With a sizeable new-issue calendar and a weaker Treasury market, tax-exempts took a breather today,” a trader said. “We were generally unchanged as a result of the lack of activity. If we had had more trading then I think we would have seen more weakness than anything else. That being said, Tarrant County did well today, which is no surprise as we’ve seen a lot of” ...continued (Clients - See Full Report) FREE TRIAL

A Few ROP's To Kick Off Week
(INSIGHT: pub. June 6, 2011; 10:30a EST)
Municipal bonds were very lightly traded in secondary markets but the primary began with a few retail order periods:

”Maybe we are a touch weaker in spots in sympathy with Treasuries or due to the calendar this week but so far today it is just quiet,” a trader said. “Bids-wanteds are very light to start. I think before we really call it any direction we have to see” ...continued (Clients - See Full Report) FREE TRIAL

Steady To Firmer Again
(INSIGHT: pub. June 3, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots today as next week’s supply shows a modest uptick:

”This afternoon the secondary slowed down considerably but we still see minor gains in spots,” a trader said. “Even with Treasuries coming off the highs, the municipal high-grade market is holding in. We also continue to see a lot of California names tighten up as we just haven’t had much issuance out West.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Even To Labor Report
(INSIGHT: pub. June 3, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots as Treasuries rallied on the monthly unemployment report:

”The last three trading sessions have seen a lot of volatility in the Government market but munis have continued to just grind higher in spots throughout it all,” a trader said. “Today is no different as we are seeing limited block activity indicating gains around 10-years or so. Trading remains limited and with next week’s supply only slightly bigger than this week’s, we do not expect a major trend shift here.” ...continued (Clients - See Full Report) FREE TRIAL

Steady To Firmer
(INSIGHT: pub. June 2, 2011; 3:30p EST)
Municipal bonds were little changed to firmer today despite a sell-off in the Treasury market as the day’s competitive loans helped to bolster tax-exempts:

”Trading has slowed down ahead of tomorrow’s number and bids are not being hit as often but still I’d say the market is steady to firmer,” a trader said. “Now, if tomorrow’s number is bad and Govies sell-off again, munis should undergo a correction but today we are not seeing it.” ...continued (Clients - See Full Report) FREE TRIAL

Dorm PITs Coming
(INSIGHT: pub. June 2, 2011; 10:30a EST)
Municipal bonds were little changed this morning while Treasuries sold-off; meantime the tax-exempt market awaits New York Dorm Authority personal income tax bonds:

”Even though we are seeing Govies back off, the muni market is holding in ok as expectations are high for this Dorm PIT deal,” a trader said. “We’ve had a good amount of New York paper lately but we expect this deal to be” ...continued (Clients - See Full Report) FREE TRIAL

A Bid For Munis
(INSIGHT: pub. June 1, 2011; 3:30p EST)
Municipal bonds remained lightly traded but did start to improve as the Treasury rally continued:

”I think we are starting to see more of a muni bid,” a trader said. “We are a little bit better but not to the point where the long-end is up a point and an eighth like in Govies. There have been some sellers in the secondary, but they are getting a bit proud as you can imagine. Secondary activity has remained light and we are clearly” ...continued (Clients - See Full Report) FREE TRIAL

NYS EFC and Omaha In Market
(INSIGHT: pub. June 1, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots, greatly underperforming the Treasury market:

”With Govies rallying, a lot of traders are making the case that municipals are up as well,” a trader said. “I’m not so sure that is really the case although we have seen a few firmer trades here and there that might merit a bump of 1- to 2-basis points in spots. Any way you look at it though, secondary activity is light, the primary is light and munis still feel generally stalled and are not keeping up with taxables.” ...continued (Clients - See Full Report) FREE TRIAL

NYS EFC Price For Retail
(INSIGHT: pub. May 31, 2011; 3:30p EST)
Municipal bonds were little changed today as the New York State Environmental Facilities Corp. priced bonds for retail investors:

”The amount of secondary activity today has been extremely low,” a trader said. “Still, there were a lot of offerings sitting around but no one was pushing it as we are about to enter June. We saw a few weaker traders early on, perhaps a hangover from last week, but as the afternoon went on and Treasuries remained firm, municipals started to see more activity. While we did pick up slightly, the prints we saw didn’t” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. May 31, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning and generally little changed:

”There have been very few trades of note so far today but we are seeing a lot of offerings floating around,” a traders said. “The trades we have seen are mostly little changed from Friday’s levels or they are showing some drift. Some of last week’s deals are trading a few off as well, which is not a great sign moving forward. Clearly the market stopped last week and the vibe so far today is the same.” ...continued (Clients - See Full Report) FREE TRIAL

Slow Friday
(INSIGHT: pub. May 28, 2011; 11:00a EST)
Municipal bonds were lightly traded today:

”Munis are doing nothing,” a trader said. “Treasuries are doing little and the stock market is not offering much either. Supply next week is minimal and this week’s deals appear to be put away because we are not seeing much trading on them.” ...continued (Clients - See Full Report) FREE TRIAL

Certain Spreads Tighten
(INSIGHT: pub. May 27, 2011; 3:30p EST)
Municipal bonds of the highest quality were little changed today while taxables improved:

”Triple-A paper is still not really moving anywhere despite the bid in Treasuries,” a trader said. “Instead we are seeing more spread tightening on a lot of single-A and double-A names. Absolute levels are pretty low right now so it is most likely accounts looking for some sort of yield in here.” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Little Changed
(INSIGHT: pub. May 27, 2011; 10:30a EST)
Municipal bonds were little changed today as Treasuries improved:

”Now we are seeing Mass trade two through the originals and we are seeing lower-rated stuff tighten up a bit,” a trader said. “But the ultra high-grade stuff really is just sitting there. The Street isn’t seeing a ton of activity, but still not everyone is waiting for the long weekend. Next week we don’t have much issuance so I don’t expect our market to change its pace.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Day
(INSIGHT: pub. May 26, 2011; 3:30p EST)
Municipal bonds traded in mixed fashion today as Treasuries faded into the afternoon:

”Secondary activity was on the quieter side today as we approach the long weekend,” a trader said. “The competitive loans didn’t really get much of a reaction from traders we spoke to. We did see some weaker trades up front, which could be attributed to what happened with ” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes; Erie Co IDA Prices
(INSIGHT: pub. May 26, 2011; 10:30a EST)
Municipal bonds were generally little changed although some reaching occurred out long in light secondary activity:

”Overall there isn’t much trading going on this morning but there were a few block trades out long on high-grades that showed accounts still like long-bonds,” a trader said. “The ratios there look more appealing and clearly the primary market showed interest out long yesterday.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed
(INSIGHT: pub. May 24, 2011; 3:30p EST)
Municipal bonds were generally little changed to weaker in spots as the day’s new-issues yielded mixed results:

”The morning bids-wanted put out by an insurance company received strong bids because a lot of traders are looking to stay short in this market right now and that list didn’t mature out beyond 8-years or so,” a trader said. “They were all high-grades as well, which helps in a market where a lot of people are looking nervous. Out long though, we did see a bit of reach in the Street – although it was pretty quiet overall – and the new-deals out there were bumped.” ...continued (Clients - See Full Report) FREE TRIAL

Steady Start
(INSIGHT: pub. May 23, 2011; 3:30p EST)
Municipal bonds were even on the day as the brunt of this week’s limited new-issuance is expected to start pricing:

”It is sideways right now but there are some nice blocks out for the bid to start so we’ll get a better idea of the tone shortly,” a trader said. ...continued (Clients - See Full Report) FREE TRIAL

Quiet With Few Changes
(INSIGHT: pub. May 23, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today despite a firmer Treasury market:

”Treasuries sold-off for a few days so municipal appetite has waned,” a trader said. “The jury is still out on how long that will last but with supply so light that we should not sell-off or anything like that. Still, today the market is taking a breather for sure.” ...continued (Clients - See Full Report) FREE TRIAL

Several Retail Order Periods Kick Off Week
(INSIGHT: pub. May 23, 2011; 10:30a EST)
Municipal bonds were little changed this morning as the primary markets offered several retail order periods:

”The market did start to get sloppy at the end of last week so that has made for some hesitancy early on today but a stronger Treasury market should help,” a trader said. “We don’t have the sellers we had last week this morning and secondary activity has been light. Massachusetts did cheapen its issue in spots but the tone definitely feels better today than it did on Friday.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet & Even
(INSIGHT: pub. May 19, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”The Street is dead,” a trader said. “After the weaker tone we saw yesterday, most accounts are going to sit on the sidelines today and see what develops. Some of the week’s deals are trading up this morning, but that is to be expected and is not indicative of a larger trend in the market.” ...continued (Clients - See Full Report) FREE TRIAL

Weaker This Afternoon
(INSIGHT: pub. May 18, 2011; 3:30p EST)
Municipal bonds declined modestly today amid taxable losses:

”The taxable market is weighing on munis,” a trader said. “We are slightly weaker in spots. New deals are still doing well but they were priced to go and the high-grade market feels stifled.” ...continued (Clients - See Full Report) FREE TRIAL

Mixed At The Open
(INSIGHT: pub. May 18, 2011; 10:30a EST)
Municipal bonds traded in mixed fashion as selling pressure caused certain names to trade off while marquee names were stable:

”We are starting to see some profit taking on the lower-rated names that have done so well in the last month,” a trader said. “Secondary selling pressure is apparent and the losses in Treasuries clearly are not helping. Still, the top-notch credits are holding in fine for now.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. May 17, 2011; 3:30p EST)
Municipal bonds improved in spots today while Oregon and Suffolk County sold bonds:

”The market is very well bid and it is firm even in the face of a slight Treasury drift,” a trader said. “New issues were bid very aggressively again today and the only thing not happening is triple-A high-grades trading through benchmark scales.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Ahead Of Suffolk County
(INSIGHT: pub. May 17, 2011; 10:30a EST)
Municipal bonds opened with a firmer tone despite losses in Treasuries:

”We are seeing a firmer tone this morning,” a trader said. “The paper that I’ve seen come around has been better bid, especially on the long-end. We expect strong bids on the day’s competitive loans.” ...continued (Clients - See Full Report) FREE TRIAL

Firmer As Several ROPs In Market
(INSIGHT: pub. May 16, 2011; 3:30p EST)
Municipal bonds firmed slightly in spots as the primary was active for a Monday:

”The Street was thinly offered and with Treasuries turning it on, municipals grinded higher in spots,” a trader said. “The 10-year range saw a lot of good trades indicating strength and we also saw it out long. The primary was the focus for most and deals appear to be” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. May 16, 2011; 10:30a EST)
Municipal bonds were lightly traded with a firmer tone in spots as a few retail order periods began:

”There is not much trading going on but we are seeing follow through from Friday’s activity,” a trader said. “We are generally unchanged but we are seeing inquiry in spots and corresponding trades that indicate a firmer tone. Connecticut didn’t get much done on Friday so we’ll see if they offer some different coupons today. Other than that, we have two Texas” ...continued (Clients - See Full Report) FREE TRIAL

Connecticut Prices Into Firmer Market
(INSIGHT: pub. May 13, 2011; 11:30a EST)
Municipal bonds improved on the front- and intermediate-range of the yield curve as Connecticut priced general obligation bonds to retail investors:

”With Treasuries making up for yesterday’s losses, munis took a bit of a clue,” a trader said. “I’d say we are seeing more activity in the 5- to 15-year range and performance there is modest. Lower-rated bonds also continue to tighten up but really bids-wanteds have been light and with” ...continued (Clients - See Full Report) FREE TRIAL

Strong Session Despite Taxable Weakness
(INSIGHT: pub. May 12, 2011; 2:00p EST)
Municipal bonds posted decent gains again today despite a weaker Treasury market as The Carle Foundation issue closed the account with a bump in 30-years:

”High-grades are better still despite govies going south,” a trader said. “The Virginia competitive loan is trading better in the Street today and we are seeing good prints on double-A state GOs like Pennsylvania and Washington. The best performance is around the 10-year area and a bit shorter plus the long-end continues to do well despite the 30-year Treasury bond being off more than a point. It is just” ...continued (Clients - See Full Report) FREE TRIAL

Big New-Issue Day
(INSIGHT: pub. May 11, 2011; 10:30a EST)
Municipal bonds traded with a firmer tone 10-years and out while the primary took center stage again:

”Early bids-wanteds received decent interest although with more activity in the primary today I think it is diverting attention away from the Street,” a trader said. “Treasuries have regained their footing and are standing basically unch right now so that should alleviate any concern there. With new levels on many primary loans priced for institutions today, we expect deals to do” ...continued (Clients - See Full Report) FREE TRIAL

High-Grades Firm Slightly
(INSIGHT: pub. May 10, 2011; 2:30p EST)
Municipal bonds firmed 10-years and out today while Treasuries lost ground:

”We still see the high-quality paper going away at good levels,” a trader said. “The very front-end of the curve is more little changed with less activity but once you get out beyond 10-years we see prints showing gains of 1- to 2-basis points. In the primary, deals are” ...continued (Clients - See Full Report) FREE TRIAL

Primary Heats Up
(INSIGHT: pub. May 10, 2011; 10:30a EST)
Municipal bonds were little changed this morning as the primary market takes center stage today:

”The prints we’ve seen show a steady tone to high-grades,” a trader said. “I’ve seen a few lower rated bonds continued to tighten up but other than that there has not been much momentum in rate direction this week. So far new-issues appear to be doing well and if” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start To Week
(INSIGHT: pub. May 9, 2011; 3:30p EST)
Municipal bonds were very lightly traded and little changed today:

”We just did not see much trading today,” a trader said. “There weren’t that many bids-wanteds to work with and customer inquiry wasn’t there as it was at the end of last week. I think we need more new-issues to get free up to get the price transparency.” ...continued (Clients - See Full Report) FREE TRIAL

A Few Retail Order Periods To Start
(INSIGHT: pub. May 9, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning as the primary markets offered a few retail order periods:

”There have been probably under 20 block trades so far today and it doesn’t look to be picking up steam as we head into the late morning,” a trader said. “It is just your basic Monday for munis so far. A few high-grade transactions around 10-years looked pretty much unchanged to our scale so based on those trades we are little changed. Last week the market moved much higher so it will be interesting to see if we can keep it up.” ...continued (Clients - See Full Report) FREE TRIAL

Steady Day For Munis
(INSIGHT: pub. May 6, 2011; 12:00p EST)
Municipal bonds were little changed today with a mixed Treasury market:

”Today the market feels as if it has hit a bit of a wall,” a trader said. “It could be because it is Friday. It is likely that levels have moved a lot in the past few days and that traders are starting to balk. Next week’s calendar is minimal once again but we do have a larger variety of deals to pick from of size. Overall, the market didn’t really respond to the expected jobs report but that is what usually happens.” ...continued (Clients - See Full Report) FREE TRIAL

Very Strong Session
(INSIGHT: pub. May 5, 2011; 3:30p EST)
Municipal bonds posted large gains in relatively light trading:

”We sort of gapped higher today,” a trader said. “We did not have a ton of trading but we just had impressive print after impressive print on the high-quality stuff and also we again noted credit spreads tightening up. Treasuries helped us out a lot and out long those ratios really encouraged the best performance.” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Again
(INSIGHT: pub. May 5, 2011; 10:30a EST)
Municipal bonds gained again today along with the Treasury market:

”It is still very thin but some of these trades are very impressive,” a trader said. “The absolute levels for high-quality 5s are trading through the coupon now and in the past that has stalled out rallies but so far that has not been the case. With the same supply picture this should continue. We will have to see what happens with the outflows but as we approach the” ...continued (Clients - See Full Report) FREE TRIAL

Another Strong Session
(INSIGHT: pub. May 4, 2011; 3:30p EST)
Municipal bonds improved again today as the final large deals of the week closed accounts:

”The whole market is up,” a trader said. “We’ve moved a good clip in the last two day with a decent amount of bonds trading. We are seeing a lot of arbs taking bonds off the shelf. It is a long-only muni market right in here so everyone has a vested interested in higher evaluations. With little selling pressure and limited” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Open
(INSIGHT: pub. May 4, 2011; 10:30a EST)
Municipal bonds traded with a firmer tone 5-years and out:

”The best names continue to see a bid but today we are seeing it more in the intermediate to long parts of the yield curve,” a trader said ...continued (Clients - See Full Report) FREE TRIAL

Modestly Better; New Jersey Closes Account
(INSIGHT: pub. May 3, 2011; 3:30p EST)
Municipal bonds posted modest gains today as the primary was generally well-received:

”I see the market as better by 1- to 2-basis points,” a trader said. “There is cash around and not a lot of attractive offerings. New issues are being priced fairly but then getting bumped.”

”There isn’t much secondary activity with most of the attention being paid to the primary,” a trader said. “The market is modestly better but I’m not sure how much better the levels are but that today it is just much easier to” ...continued (Clients - See Full Report) FREE TRIAL

Primary Gets Going
(INSIGHT: pub. May 3, 2011; 10:30a EST)
Municipal bonds were little changed to firmer in spots this morning as several of the week’s larger new-deals began pricing:

”We are seeing more activity out long today and it is probably tighter by a few,” a trader said. “The sub-20-year sector though isn’t seeing as much activity and is probably unchanged to firmer. Several recent deals like O’Hare or Auburn University continue to tighten up out long in the Street but other than that, guys are getting little pieces done here and there but I’m not seeing a” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Day All Around
(INSIGHT: pub. May 2, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today as were taxable markets:

”It is very quiet today; typical of municipals on a Monday,” a trader said. ”Quiet but today was a very good day for the U.S.A.!,” a trader said.

Thin secondary trading volume and frankly not much to look forward to in the primary market is not leaving traders much to work with,” a trader said. “The continued mutual fund outflows have been the talk this morning but at this point the market appears to be able to sustain” ...continued (Clients - See Full Report) FREE TRIAL

Quiet As Oregon Prices For Retail
(INSIGHT: pub. May 2, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”There has not been much trading to point to so far today,” a trader said. “Oregon offered the University GOs to retail investors so that is providing for some activity but as far as the secondary is concerned with Treasuries providing no direction, we are just not seeing” ...continued (Clients - See Full Report) FREE TRIAL

Good Day For Munis
(INSIGHT: pub. April 28, 2011; 3:30p EST)
Municipal bonds gained today in sympathy with the Treasury market as once again new deals found strong interest:

”Today we are seeing a good amount of secondary activity and most of it shows a continued rally in here,” a trader said. “The 10-year area is seeing the most reach but really up and down the curve we see evidence of strength. Mutual funds continue to raise cash in the intermediate range and today they are” ...continued (Clients - See Full Report) FREE TRIAL

MEAG Upsized Into Firmer Market
(INSIGHT: pub. April 28, 2011; 10:30a EST)
Municipal bonds opened modestly stronger again as Treasuries improved early on:

”This morning we have had a good amount of secondary activity between big deals freeing up to trade and a lot of bids-wanteds,” a traders said. “Bids have been firm, especially around the 10-year spot and O’Hare bonds are trading up in the Street as well. Yesterday it looked like we might be hitting a wall but today it does not.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Better In Spots
(INSIGHT: pub. April 27, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots as the day’s new-deals again found warm investor reception:

”It was firm yesterday, especially in the afternoon but today we are not seeing as much of that type of activity,” a trader said. “We still saw some mutual funds buying out long at firmer levels and on other parts of the curve there were enough prints to demonstrate wider gains, but there were also a lot of even trades. The Treasury market today took some steam out of the muni market and with all the” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Open
(INSIGHT: pub. April 27, 2011; 10:30a EST)
Municipal bonds opened with a mixed tone as Treasuries declined and the last large new-issues of the week came to market:

”We saw some bids-wanteds receive strong bids but also some sellers allowing for concessions,” a trader said. “I’d say mostly we have a firmer tone across the curve but there have been a few signs that munis are tired. The weakness in taxables doesn’t help and with all the headlines due out later today some are staying on the sidelines. High-grades were" ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary Prices Bonds Into Firmer Market
(INSIGHT: pub. April 26, 2011; 3:30p EST)
Municipal bonds improved today with the best performance out long while the primary saw generally good retail reception to the day’s deals:

”The market is definitely firmer again today,” a trader said. “It continues to be a balancing act between outflows and the lack of supply. But so far no supply is winning as the dominant effect. A rally in the Treasury market doesn’t hurt either.”

High-grades improved 2- to 4-basis points today, traders said. ”The market is better today but we are not" ...continued (Clients - See Full Report) FREE TRIAL

O'Hare Prices For Retail
(INSIGHT: pub. April 26, 2011; 10:30a EST)
Municipal bonds traded with a firm tone as the week’s large deals priced for retail investors:

”There continues to be a push for high-grades,” a trader said. “Secondary activity picked up from yesterday but we are still seeing a low volume of trades. The primary started with retail orders and so far none of the levels are that surprising. We’ll see how they do.” ...continued (Clients - See Full Report) FREE TRIAL

Quiet But Firmer Still
(INSIGHT: pub. April 25, 2011; 3:30p EST)
Municipal bonds were lightly traded but with a firmer tone again as the primary was lacking:

”The secondary market has remained light the entire day and the primary had nothing of size yet,” a trader said. “We have not seen many big blocks move today but still we saw some trades around one million that looked a few better. A good amount of single-A to double-A paper is tightening as well as perhaps some are shying away from the levels on triple-A names. Names like” ...continued (Clients - See Full Report) FREE TRIAL

Firm To Start
(INSIGHT: pub. April 25, 2011; 10:30a EST)
Municipal bonds were lightly traded with a firm tone to start the week:

”The Street is thinly offered and the few trades we’ve seen show a continued willingness to push tax-exempts slightly,” a trader said. “Gains are more pronounced up front and in the belly but out long it is just quiet for the most part. We don’t have much issuance again this week so overall liquidity will be the real challenge.” ...continued (Clients - See Full Report) FREE TRIAL

Firm Tone To End Week
(INSIGHT: pub. April 21, 2011; 12:00p EST)
Municipal bonds were lightly traded with a firmer tone as next week’s supply will yet again be on the light side:

”It is pretty quiet out there, as of eleven this morning we saw only about 100 trades but there have been a few prints indicating a firmer tone,” a trader said. “Maryland’s in 2022 looked good as well as some Texas names early on.” ...continued (Clients - See Full Report) FREE TRIAL

Stronger Yet Again
(INSIGHT: pub. April 20, 2011; 3:30p EST)
Municipal bonds gained today as both the primary and secondary markets showed a willingness to bid up tax-exempts:

”Dealer bids on today’s large Florida competitive loan were similar to all the strong bids during March,” a trader said. “That support really helped to get the market moving again despite weakness in taxable markets the entire session. The 10-year area continues to perform the best as the relative value there has looked the best of late but we might be” ...continued (Clients - See Full Report) FREE TRIAL

Florida To Sell Shortly
(INSIGHT: pub. April 20, 2011; 10:30a EST)
Municipal bonds opened with a firmer tone yet again as the few scheduled new-deals of size began the pricing process:

”We’ve seen strong prints across the board really,” a trader said. “The intermediate area though continues to perform the best. We have limited secondary sellers and little to speak of when it comes to new-deals. Florida sells high-grade GOs at 10:30 and we expect it to get strong dealer support.” ...continued (Clients - See Full Report) FREE TRIAL

Munis See A Firmer Bid
(INSIGHT: pub. April 15, 2011; 10:30a EST)
Municipal bonds traded with a firm tone this morning but continue to underperform Treasuries:

”Treasuries rally for three days and munis can’t really follow, so of course on the fourth day you are going to see people push it,” a trader said. “I’m seeing a lot of triple-A names trade better but it seems like it is being dominated by a few shops in particular. I am not sure how many” ...continued (Clients - See Full Report) FREE TRIAL

Munis Post Modest Gains
(INSIGHT: pub. April 14, 2011; 3:30p EST)
Municipal bonds posted modest gains today despite taxable losses:

”With limited issuance coming next week we saw more accounts willing to reach for tax-exempts,” a trader said. “That, plus the momentum has sort of been building all week to where today we finally saw a good amount of activity. The primary was also well-received with” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Open
(INSIGHT: pub. April 14, 2011; 10:30a EST)
Municipal bonds opened the day with a firmer tone and an uptick in secondary activity:

”This morning’s bids-wanteds appeared to get firm bids as we are seeing the muni market slowly get more constructive,” a trader said. “Clearly the pulling of the Liberty deal helped the market this week – especially with New York paper, but selling pressure abated slightly and there has been a more” ...continued (Clients - See Full Report) FREE TRIAL

Firmer; New Issues Do Well
(INSIGHT: pub. April 13, 2011; 3:30p EST)
Municipal bonds traded with a firmer tone 10-years and out today as most new-issues were well received:

”With still continued light secondary activity, we started to get more constructive into the afternoon with a little help from the Treasury market,” a trader said. “While we still aren’t a very deep market in terms of buyers, we did see more examples of strong bids of the day’s lists in the afternoon. That, plus most of the large” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Secondary But Primary Gets Going
(INSIGHT: pub. April 13, 2011; 10:30a EST)
Municipal bonds were little changed in a quiet start to the day:

”With Treasuries pulling back a bit from yesterday’s rally, municipals also lost steam,” a trader said. “We saw a decent amount of activity yesterday with the run in taxables but today that just isn’t the case. A few firmer bids out long were noted but nothing substantial just yet. For now the market is” ...continued (Clients - See Full Report) FREE TRIAL

Strength In Spots
(INSIGHT: pub. April 12, 2011; 3:30p EST)
Municipal bonds exhibited a firmer tone 10-years and out today as Treasuries rallied:

”We are definitely lagging the Treasury market today but munis are slightly firmer across the curve, especially 10-years and out,” a trader said. “There are not a lot of high-quality bonds around. Even though we look cheap on paper, no one wants to really take the” ...continued (Clients - See Full Report) FREE TRIAL

Still Waiting On Large Deals
(INSIGHT: pub. April 12, 2011; 10:30a EST)
Municipal bonds were little changed to slightly firmer in spots as Treasuries advance:

”We are more sideways than anything right here,” a trader said. “Guys are trying to force it higher but I don’t think it is happening that much. Maybe it’s a touch firmer out long but up front it isn’t happening. Some offers are firmer this morning but there is an off-the-run seller, I suspect a” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start To The Week
(INSIGHT: pub. April 11, 2011; 3:30p EST)
Municipal bonds were little changed today as the largest scheduled deal of the week was postponed:

”Looking at this week going into the day we had a decent amount of supply coming and we had an uptick in mutual fund outflows,” a traders said. “So it started out slow with a good amount of hesitancy. But as the day progressed we had the World Trade Center deal postponed and a relatively light amount of bids wanteds. As a result we ended up generally” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. April 11, 2011; 10:30a EST)
Municipal bonds were lightly traded with few changes this morning:

”Secondary offerings are slim and no new-deals of size have been priced,” a trader said. “So the market doesn’t have much to offer right now. We get the feeling that a lot of dealers that were long competitive loans over the last few weeks have been able to move product along. That is a positive development as it has been weighing on us. Still, we are not seeing accounts” ...continued (Clients - See Full Report) FREE TRIAL

Modest Losses 10-Years & Out
(INSIGHT: pub. April 8, 2011; 3:30p EST)
Municipal bonds declined 10-years and out along with the Treasury market today:

”Municipals continue to slide with other markets,” a trader said. “There is no demand to prop us up and this is despite the fact that we continue to move along with no supply and today little selling pressure.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker
(INSIGHT: pub. April 8, 2011; 10:30a EST)
Municipal bonds traded with a weaker tone in spots today along with Treasuries while next week’s supply will see a modest uptick:

”The outlook for the Treasury market does not look so great right now so I think muni traders are more willing to move bonds at concessions if they need to,” a trader said. “There is not a lot of trading occurring but with what we’ve seen so far – especially in the” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes
(INSIGHT: pub. April 7, 2011; 3:30p EST)
Municipal bonds were little changed today amid light trading:

”There continue to be a lot of syndicate balances hanging around,” a trader said. “There is not one huge list out there but a lot of dealers have items around from recent deals that together really add up. There are also a lot of sub-par coupons out there and retail isn’t pressing right now so it feels sloppy as a result. On the other side, we don’t have much” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed At Open
(INSIGHT: pub. April 7, 2011; 10:30a EST)
Municipal bonds were little changed this morning:

”We are seeing a decent amount of secondary flow to start the day but most prints show a relatively little changed tax-exempt market,” a trader said. “With the primary market basically done for the week, we expect to see more focus on the Street. Most large deals should be free-to-trade today and based on how deals have been faring so far we are hoping for” ...continued (Clients - See Full Report) FREE TRIAL

Largest Deals Close Accounts
(INSIGHT: pub. April 6, 2011; 3:30p EST)
Municipal bonds were weaker yet again 10-years and out today as the week’s largest deals closed accounts:

”The primary did fairly well this week save for a few deals,” a trader said. “New York was able to upsize and Philly bumped bonds. In the secondary, there is growing noise about cross-over potential as munis are not sliding like Treasuries, but we’ve yet to see that trade come into play yet. Up front, we noted a lot of retail-oriented accounts” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper In Spots; DC Review
(INSIGHT: pub. April 6, 2011; 10:30a EST)
Municipal bonds traded with a slightly weaker tone 10-years and out today as Treasuries also opened softer:

”Trading is on the lighter side once again but we continue to see weaker prints in the intermediate, and today, on the long-end,” a trader said. “Yesterday’s deals seem to have done relatively well but a few are” ...continued (Clients - See Full Report) FREE TRIAL

10-Years And Out Show Losses
(INSIGHT: pub. April 5, 2011; 3:30p EST)
Municipal bonds declined modestly 10-years and out today as selling pressure and Treasury losses weighed on the tax-exempt market:

”Tax-exempts had a weak tone going into the early afternoon but trading remained light for most of the session,” a trader said. “With Treasuries really fading after the [FOMC] minutes were released, the secondary really froze up for our market. On Friday and Monday we didn’t have much selling pressure but today” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Open
(INSIGHT: pub. April 5, 2011; 10:30a EST)
Municipal bonds were mixed to start while Treasuries faded slightly, meantime the primary was active with multiple retail order periods:

”A few block trades up front today indicated stability this morning but a bit further out, in the 10-year to 12-year area, we saw some more weaker trades,” a trader said. “There actually was a decent amount of high-grade activity early on as bonds came out of bids-wanteds and dealer offerings of recent issues were lifted. It does appear that” ...continued (Clients - See Full Report) FREE TRIAL

Mixed Day; TFA Takes Retail Orders
(INSIGHT: pub. April 4, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today while the New York City Transitional Finance Authority priced bonds:

”The market has been pretty slow today and once again we are not seeing that much supply this week,” a trader said. “We are hearing that TFAs are doing well with retail. We’ve heard they’ve done about $125 million in orders so far – that is good for a Monday. On the one hand we’re at adjusted levels but the” ...continued (Clients - See Full Report) FREE TRIAL

Quiet & Little Changed
(INSIGHT: pub. April 4, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”There is an attempt to move the market this morning but so far it is leading nowhere,” a trader said. “If you look at the thin list of offerings, I think we are seeing accounts assuming that with the underperformance last week and with Treasuries firm yet again today that munis will follow. So far though, the bid/ask spreads remain” ...continued (Clients - See Full Report) FREE TRIAL

Munis Weaken For 10th Straight Session
(INSIGHT: pub. April 1, 2011; 3:30p EST)
Municipal bonds continued a two-week slide today with losses, this time in sympathy with the Treasury markets:

”Dealers are heavy and it takes a concession to move bonds,” a trader said. “We continue to see Anne Arundel’s cheapening up and basically that is happening with most competitive loans from the past two weeks. It is not horrendously sloppy out there, but with” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker But Quiet
(INSIGHT: pub. April 1, 2011; 10:30a EST)
Municipal bonds demonstrated weakness 10-years and out today as taxables lost ground on the monthly employment report:

”The market remains lightly traded today as the Treasury market slides on the employment data,” a trader said. “We are seeing Anne Arundel and Florida PECOs trade cheaper from where they sold this week and those trades really tell it all. Outside of that, the usual list of sellers are putting” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Munis To End Quarter
(INSIGHT: pub. March 31, 2011; 3:30p EST)
Municipal bonds declined today with again the worst performance in the 10-year range:

”Activity this afternoon waned as tomorrow we have the new employment number and as we close down the first quarter of the year,” a trader said. “Still we continued to see cheaper prints on general market, high-grade names from bids-wanteds and dealers lightening their loads. The worst performance was in the” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Again In Areas
(INSIGHT: pub. March 31, 2011; 10:30a EST)
Municipal bonds opened weaker yet again today in spite of a firmer Treasury market:

”Same story as the entire week – the 10-year range continues to be under mild pressure,” a trader said. “We see prints on Louisiana, Wake County and North Carolina just to name a few, that are looking cheaper once again. This is the” ...continued (Clients - See Full Report) FREE TRIAL

Another Round Of Modest Losses
(INSIGHT: pub. March 30, 2011; 3:30p EST)
Municipal bonds cheapened today with the largest losses around 10-years once again while the day’s competitive loans again showed a more restrained dealer community:

”From my perspective, dealers seem to be doing a little housecleaning before quarter-end,” a trader said. “Perhaps the low issuance volume had lured the Street into a false sense of security but there were a lot of new-issue balances just linger around. We are seeing a little bit of capitulation as buyers remain” ...continued (Clients - See Full Report) FREE TRIAL

Anne Arundel, Florida PECOs To Sell Shortly
(INSIGHT: pub. March 30, 2011; 10:30a EST)
Municipal bonds traded cheaper yet again despite a firmer Treasury market and ahead of two high-grade competitive loans:

”The activity is light but we see a decent amount of selling pressure and sellers hitting cheaper bids so far this morning,” a trader said. “The bids on Anne Arundel and Florida are likely to be similar to what we had last week and that means more fair value than a fight for competitive loans. Traders are not paying attention to the” ...continued (Clients - See Full Report) FREE TRIAL

Munis Decline Again; Thoughts On DeKalb
(INSIGHT: pub. March 29, 2011; 3:30p EST)
Municipal bonds declined today in sympathy with Treasuries as the bulk of this week’s issuance came to market:

”We are weaker today,” a trader said. “We started out a touch weaker and with taxables losing more ground as the day wore on, so did municipals. Bonds seem to be trading all over the place though. There is just not a deep bid and liquidity is hard to come by. We saw a lot of” ...continued (Clients - See Full Report) FREE TRIAL

Primary Issuance Begins
(INSIGHT: pub. March 29, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning:

”It is very quiet again this morning,” a trader said. “Still, we see a decent amount of bids-wanteds out there and balances from last week’s deals. The tax-exempt market is getting into the bad habit of not clearing the market with what we want to clear the market with. We lose velocity after that has been” ...continued (Clients - See Full Report) FREE TRIAL

Still...Quiet
(INSIGHT: pub. March 28, 2011; 3:30p EST)
Municipal bonds were lightly traded but lost ground 10-years and out as tomorrow the primary is expected to step up:

”The tax-exempt market continues to be under slight pressure from recent issuance coupled with continued selling pressure,” a trader said. “Today we did not have much of a primary to deal with and so focus was on a secondary that saw a few bigger bid-wanteds hit cheaper bids. So, we are probably a bit” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. March 28, 2011; 10:30a EST)
Municipal bonds were lightly traded with a mixed tone as Treasuries opened weaker:

”There have been some up trades and some down trades,” a trader said. “Overall though there is just not much trading. TFA’s in 9-years looked a bit weaker and the prints on Ports and Waters out long from last week’s deals also show some widening. It is quiet, a few lists out there but really I’m watching how dealers move” ...continued (Clients - See Full Report) FREE TRIAL

Ten-Year Area Pressured Modestly
(INSIGHT: pub. March 25, 2011; 3:30p EST)
Municipal bonds showed losses around 10-years today while Treasuries declined in the afternoon:

”Next week we have less than half the supply we had this past week and that has some thinking it will help dealers move product,” a trader said. “There are sizeable balances from this week’s deals and it weighed on the market today. That, plus sellers again in the 5- to 15-year range, led to” ...continued (Clients - See Full Report) FREE TRIAL

Quiet; Slightly Weaker In 10-Years
(INSIGHT: pub. March 25, 2011; 10:30a EST)
Municipal bonds were generally little changed although the 10-year area showed weaker prints early on while Treasuries improved into the mid-morning:

”There are still sellers that are hitting cheaper bids around 10-years,” a trader said. “Overall the secondary is quiet but we saw prints on Minnesota PFA, Florida PECOs and Harvard’s in the 10- to 15-year range that could lead to some cutting their scales in that area. Overall though, supply is” ...continued (Clients - See Full Report) FREE TRIAL

Cheaper In Spots
(INSIGHT: pub. March 24, 2011; 3:30p EST)
Municipal bonds were little changed to cheaper today in sympathy with the Treasury market and as dealer balances remain from recent issues:

”We see the market weaker 1- to 4-basis points along the curve,” a trader said. “Dealers have balances from the last two weeks and seem to be offering slight concessions to get balances off their books. They are still being somewhat patient, but unless we get another leg lower in Treasury yields, then munis will continue to” ...continued (Clients - See Full Report) FREE TRIAL

Light Primary Leads To Focus On Secondary
(INSIGHT: pub. March 24, 2011; 10:30a EST)
Municipal bonds were slightly cheaper 10-years and out this morning as the focus turns to trading of the week’s deals:

”We started with a weaker Treasury and I think the consensus is that will continue to happen as we move beyond Japan’s immediate flight-to-quality bid,” a trader said. “That should lead munis into higher yields but that is not the major driver here. The major driver here is that the market feels heavy right now. We’ve had a decent” ...continued (Clients - See Full Report) FREE TRIAL

Munis Mixed/Weaker Today
(INSIGHT: pub. March 23, 2011; 3:30p EST)
Municipal bonds showed some losses in the intermediate range but generally a mixed tone prevailed as taxables moved back and forth and the day’s competitive loans demonstrated a possible new trend:

”The market feels mixed to us,” a trader said. “The competitive loans received more reasonable bids from what we’ve seen of late and that is new as dealers have been bidding well through the market recently. There has been some consternation about all the New York paper coming this week and retail did step up to the plate for the waters but 5s out long at” ...continued (Clients - See Full Report) FREE TRIAL

Massachusetts; Port Authority To Sell Shortly
(INSIGHT: pub. March 23, 2011; 10:30a EST)
Municipal bonds were little changed this morning ahead of two sizeable competitive loans while Treasuries improved:

”The market is lightly traded ahead of the day’s competitive deals,” a trader said. “We saw perhaps a few firmer prints early on in sympathy with Treasuries but we also saw” ...continued (Clients - See Full Report) FREE TRIAL

Big New-Issue Day
(INSIGHT: pub. March 22, 2011; 3:30p EST)
Municipal bonds were slightly weaker up front as the market digested the largest tax-exempt new-issue day seen in some time:

”We are off a touch,” a trader said. “The bid-side is just super thin right now. It is really all about the luck of the draw. It is hard to know if you are going to see inquiry or not. Sometimes it is there but a lot of times it just is not. The market is sloppy and you can see the” ...continued (Clients - See Full Report) FREE TRIAL

Busy Primary This Morning
(INSIGHT: pub. March 22, 2011; 10:30a EST)
Municipal bonds were slightly weaker in spots again as New York State is scheduled to sell bonds shortly:

”We still see some cautious trading in the intermediate range based on some trading off high-grade bids-wanteds early on,” a trader said. “On the other hand, long bonds look steady so far. We will see how the New York bonds sell in a few minutes but we expect dealers to continue to be aggressive with those deals as they fight for product. There is continued underlying” ...continued (Clients - See Full Report) FREE TRIAL

Tax-Exempts Lose Ground
(INSIGHT: pub. March 21, 2011; 3:30p EST)
Municipal bonds declined today in sympathy with the Treasury market but also as new-issuance picks up slightly:

”With losses in Treasuries, a decent new-issue calendar this week and low absolute levels, tax-exempts are cheaper today,” a trader said. “We’ve seen continued bids-wanteds that are drawing cheap bids. We see some dealers looking to lighten up and the general feeling is that we need to move cheaper to garner any attention.” ...continued (Clients - See Full Report) FREE TRIAL

Ten-Year Weakness Again
(INSIGHT: pub. March 18, 2011; 11:00p EST)
Municipal bonds were little changed to slightly weaker in spots as issuance grows slightly next week:

”So far the market is a bit cheaper in the 10-year spot again but overall activity is light,” a trader said. “Some sellers have emerged again, which we have had all week really, and it is weighing on the market. That, plus we see some getting out of the cross-over trade right here. We have more bonds coming to market next week, but still we are on pace for a pre-2000’s type of year. There is a lot of” ...continued (Clients - See Full Report) FREE TRIAL

A Touch Weaker
(INSIGHT: pub. March 17, 2011; 3:30p EST)
Municipal bonds declined in sympathy with the Treasury market today:

”Today munis generally watched every other market reverse the last two day’s direction and do little with it,” a trader said. “We saw some weakness in places. We saw it especially with recent competitive loans that were probably purchased too rich. We saw it with recent negotiated loans as well that were” ...continued (Clients - See Full Report) FREE TRIAL

Little Changed
(INSIGHT: pub. March 17, 2011; 10:30a EST)
Municipal bonds were little changed this morning as taxable markets sold off:

”From a financial standpoint at least it appears the world is starting to form a plan about Japan so the markets are responding in kind,” a trader said. “For the most part, munis are content to just sit here and wait. Trading is much less today than it was on Tuesday or Wednesday.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Improve With Treasuries Again
(INSIGHT: pub. March 16, 2011; 3:30p EST)
Municipal bonds gained today with Treasuries as the last scheduled large deals of the week came and went with success:

”For the first time in a while I think the long-end saw strong bids,” a trader said. “It has been very quiet for a while but today it did well with triple-A bonds leading the charge. Clearly the bid in Treasuries is making this happen but for now traders are content to ride that charge.” ...continued (Clients - See Full Report) FREE TRIAL

Boston Coming As Firmer Tone Persists
(INSIGHT: pub. March 16, 2011; 10:30a EST)
Municipal bonds traded slightly firmer today with Treasuries as the primary is thin for the balance of the week:

”We saw a flurry of triple-A bonds trade at the get-go that indicated a firmer tone yet again,” a trader said. “Since then things have slowed slightly but overall liquidity has been better this week. Boston’s competitive loans should do well as Wake did yesterday.” ...continued (Clients - See Full Report) FREE TRIAL

Good Day For Munis
(INSIGHT: pub. March 15, 2011; 3:30p EST)
Municipal bonds gained today on a strong Treasury market and dealer support on the competitive slate:

”The market looks very strong today even with Treasuries backing off earlier gains,” a trader said. “The intermediate range definitely looked the best but we saw improvement in most places for high-grades. Wake got a very strong bid and by our accounts it is moving along well. With so few issues coming to market for the rest of the week and” ...continued (Clients - See Full Report) FREE TRIAL

Wake County In The Wings
(INSIGHT: pub. March 15, 2011; 10:30a EST)
Municipal bonds improved this morning in sympathy with the Treasury market:

”The rising tide in Treasuries seems to be lifting all boats,” a trader said. “That is, double-A bonds and above are trading better across the board. I can’t say exactly what is happening in the sub-A market though. Ratios are really moving today and right now that trade is a ” ...continued (Clients - See Full Report) FREE TRIAL

Munis Improve In Spots
(INSIGHT: pub. March 14, 2011; 3:30p EST)
Municipal bonds improved slightly 10-years and in while taxable markets rallied today:

”The market remains quite thin,” a trader said. “10-years and in is looking firm as there is less offered there and we are seeing some money managers buying just to buy frankly. There is definitely some bond swapping going on by certain dealers on some recently issued deals. I think some dealers bit off more than they could chew just to own bonds and are feeling” ...continued (Clients - See Full Report) FREE TRIAL

Connecticut Prices
(INSIGHT: pub. March 14, 2011; 10:30a EST)
Municipal bonds were little changed as Connecticut began taking retail orders:

”With little secondary activity to speak of most eyes are on Connecticut,” a trader said. “The levels look fine and we expect that deal to do well given the lack of new issues this week. The bid for Treasuries is helping tax-exempts as well so we expect the market to firm as the day progresses.” ...continued (Clients - See Full Report) FREE TRIAL

Municipals Ended the Week with Definitive Challenges
(INSIGHT: pub. March 10, 2011; 3:30p EST)
Municipal bonds were little changed into the late morning as much of this week’s supply is beginning to trade in the secondary:

”There have been a few better trades up front, in the retail part of the curve but farther out we see a more mixed tone,” a trader said.” All the bonds from Tuesday and Wednesday are providing for some pressure. That, along with a few mid-morning sellers and we are seeing some down trades out long. So far we aren’t seeing a lot of that activity to weigh the entire market but there is a sense that we are heavy here.” ...continued (Clients - See Full Report) FREE TRIAL

Municipal bonds were little changed
(INSIGHT: pub. March 9, 2011; 3:30p EST)
Municipal bonds were little changed today as the primary allowed for price discovery:

”Maryland GOs just sold on the triple-A 5% scale,” a trader said. “We see the market as unchanged at the moment but the secondary market bid-side does feel soft. The absence of supply should continue to support the market but demand seems to be moderating as well.” ...continued (Clients - See Full Report) FREE TRIAL

Headwinds for the Tax-Exempt Industry Remain Unrelenting
(INSIGHT: pub. March 8, 2011; 3:30p EST)
While the headwinds for the tax-exempt industry remain unrelenting, there is some solace in the history of the municipal market. The average annual performance for municipals between 1983 and 2010 has been positive. Given that the first two weeks have generated a negative total rate of return, there is some argument that investors can obtain longterm value with current purchases, Figure 1. The loan exceptions to the average were the negative TRR years of 1994 and 1999 (respective 10-year TRR declines of -8.18% and -4.64%). The challenge for investors is to find value away from ...continued (Clients - See Full Report) FREE TRIAL

Municipal Market Was Quiet
(INSIGHT: pub. March 7, 2011; 3:30p EST)
The municipal market was quiet as it sought to price and distribute the scarcity of primary product amid more negative headlines that have placed the municipal bond holder in adverse light-effectively a robber baron who is taking money from poor pensioners (a notion championed on CNBC in 2010 by short-seller Jim Chanos). As MMA presented to the National Governors Association (NGA) skewed journalism obfuscates the societal and economic benefits of low interest rate financing for purposeful infrastructure projects. The risks of municipal bondholders continues to also be misrepresented as one that is comparable to GM investors. ...continued (Clients - See Full Report) FREE TRIAL

Municipals Ended the Week with Definitive Challenges
(INSIGHT: pub. March 4, 2011; 3:30p EST)
The municipal market ended the week with definitive challenges. Participants are looking toward the absence of primary product as a reason to hold price, while the exuberance of the rally (especially the offerings of AAA GO names) has placed the market in a definitive RISK condition, especially in its intermediate range, Figure 1. ...continued (Clients - See Full Report) FREE TRIAL

Treasury prices finally exerted a negative force
(INSIGHT: pub. March 3, 2011; 3:30p EST)
Two days of lower Treasury prices finally exerted a negative force on the taxexempt sector. The longer maturities displayed a more sensitive and larger rise in yields than elsewhere on the curve. While the 30-day calendar remained light so too have been the reinvestment flows - historically the next 3 months represent a low period for the year. ...continued (Clients - See Full Report) FREE TRIAL

Munis Little Changed to Start
(INSIGHT: pub. March 2, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed as the Pennsylvania Housing Finance Agency moved into taking institutional orders this morning:

”The secondary is pretty quiet this morning and we aren’t seeing much price movement as a result,” a trader said. “There have been a few firmer trades around 10-years but it is too soon to call that part of the market better. Yesterday’s competitive loans received strong bids so we are now waiting to see how they break free in the Street. That should provide some clarity on where we stand although most of the” ...continued (Clients - See Full Report) FREE TRIAL

Uncertainty Out Long; Louisiana to Barclays
(INSIGHT: pub. March 1, 2011; 1:00p EST)
Municipal bonds were generally little changed with perhaps some weakness out long while Louisiana sold bonds to Barclays Capital:

”There was a cheaper print on Salts in 2039 that spooked some people today,” a trader said. “There is also a big buy-side player showing a lot of bonds out long today. So yea, some guys appear to be selling and it is probably some profit taking. So the long-end might be a bit cheaper but it is probably a little” ...continued (Clients - See Full Report) FREE TRIAL

Quiet End To February
(INSIGHT: pub. February 28, 2011; 3:30p EST)
Municipal bonds were very lightly traded today with limited sellers and new-issuance while a firmer tone was noted around 10-years by some:

”There have been some firmer trades around the 10-year area but really the story today was a lack of activity on a variety of fronts,” a trader said. “The Street was quiet and sellers are marginal. The new-issue market had nothing to offer either. Some are talking up month-end evals and others are talking about” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet To Start
(INSIGHT: pub. February 28, 2011; 10:30a EST)
Municipal bonds were very lightly traded today with few issues priced to start the last day of the month:

”The market is more unchanged than anything else on light trading,” a trader said. “That being said, we have seen a few strong prints around the 10-year spot with bonds like Georgia trading a few better than on Friday. Other than that though, there is very little issuance again this week and we are on the” ...continued (Clients - See Full Report) FREE TRIAL

Munis Firmer To End Week
(INSIGHT: pub. February 25, 2011; 3:30p EST)
Municipal bonds showed modest gains today as Treasuries found a bid in the afternoon:

”The most trading we’ve seen today is around 10-years,”a trader said. “In that range we saw morning bids-wanteds get solid interest and overall just more flow out to 15-years or so. Secondary activity was overall light however and as we near month-end, that may have encouraged some to” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Friday
(INSIGHT: pub. February 25, 2011; 10:30a EST)
Municipal bonds were lightly traded but with a firmer tone as supply remains limited going forward:

”With nothing coming to market for a while there is a tendency to reach,” a trader said. “This morning there is not much offered but some bids-wanteds floating around should show strong prints by the 10:30 bid-by time. Treasuries look stable today and so far that is allowing tax-exempts to push a bit higher.” ...continued (Clients - See Full Report) FREE TRIAL

Little Trading/Little Supply & Munis Improve
(INSIGHT: pub. February 24, 2011; 3:30p EST)
Municipal bonds improved today with the Treasury market as the primary remained thin:

”With so little product to work with, tax-exempts are moving higher and higher,” a trader said. “We saw a few sellers early on in the belly that were able to move bonds at stronger levels but overall secondary trading was on the light side. The bid in Treasuries definitely helps as well but still we seem to be frozen at this point. The primary has got to” ...continued (Clients - See Full Report) FREE TRIAL

Gains For Tax-Exempts
(INSIGHT: pub. February 24, 2011; 11:00a EST)
Municipal bonds improved with the Treasury market as the primary is very quiet:

”The most activity today is happening around the 10-year range as we are seeing some very solid prints there,” a trader said. “The term ‘most activity’ isn’t saying that much in this environment, but it is where we are seeing some customers put out the most blocks and nine times out of ten getting” ...continued (Clients - See Full Report) FREE TRIAL

Munis Improve Despite Taxable Turnaround
(INSIGHT: pub. February 23, 2011; 3:30p EST)
Municipal bonds improved today despite Treasuries coming off the highs of the day while Illinois set the coupon on its large taxable loan:

”We continue to grind higher today with no supply,” a trader said. “While Treasuries have come off a little but, the muni market is still showing gains and not giving anything up. Flows are not overwhelming here because there are no bonds around but if you own the right structure and credit then” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Tone Again; Illinois Launches
(INSIGHT: pub. February 23, 2011; 10:30a EST)
Municipal bonds were stronger in the front- and intermediate-ranges today as Treasuries also showed gains in the mid-morning:

”There are customers reaching for bonds in the 5- to 15-year range today,” a trader said. “Actually we’ve seen a decent amount of secondary block trading in that range today, which is definitely welcome. Farther out the curve though we aren’t seeing as much reach and that part of the market is more little changed and” ...continued (Clients - See Full Report) FREE TRIAL

Munis Better With Treasuries
(INSIGHT: pub. February 22, 2011; 3:30p EST)
Municipal bonds gained today in sympathy with the Treasury market as Illinois took indications of interest on its multi-billion taxable loan:

”Munis are moving higher along with Treasuries,” a trader said. “I think the buy-side understands there is not much in the way of supply this week. That, coupled with Treasuries grinding higher, I’m surprised we are not up more than just 2- or 3-basis points.” ...continued (Clients - See Full Report) FREE TRIAL

Price Talk On Taxable Deals
(INSIGHT: pub. February 22, 2011; 10:30a EST)
Municipal bonds showed gains this morning in sympathy with the Treasury market:

”The bid in the Treasury market has led to many bumped offerings in muniland but the reality is that we have yet to see much trading in our market today,” a trader said. “There is especially little activity up front so that part of the market is unchanged. Once we move beyond the 10-year spot though we are seeing more” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Better
(INSIGHT: pub. February 18, 2011; 3:30p EST)
Municipal bonds posted modest gains on light trading today as supply is thin once again next week:

"The municipal market seems to be continuing the week’s trend,” a trader said. “I see the scale unchanged to better by 1- to 2-basis points on light volume but with good interest on quality names. We definitely have a” ...continued (Clients - See Full Report) FREE TRIAL

Some Sellers In 10-Years
(INSIGHT: pub. February 18, 2011; 10:30a EST)
Municipal bonds were little changed this morning as Treasuries lost ground:

”The Street is light but we see some high-grades names out for the bid around 10-years this morning,” a trader said. “Triple-A state GOs like Maryland and North Carolina are on some lists so how they trade should define the short-end for the rest of the day. Other than that the market is” ...continued (Clients - See Full Report) FREE TRIAL

Another Strong Day
(INSIGHT: pub. February 17, 2011; 3:30p EST)
Municipal bonds gained today with the best performance in the 10- to 20-year range:

”The market has broad support at this time,” a trader said. “We see dealers buying; we see retail in the market and a lot of funds picking up pieces in the Street. We still have selling but it is a good thing at this point because it is giving us paper to work with. Supply will be” ...continued (Clients - See Full Report) FREE TRIAL

Munis Stronger Again
(INSIGHT: pub. February 17, 2011; 10:30a EST)
Municipal bonds posted gains again today in sympathy with strength in the Treasury market and as issuance continues to be lackluster:

”The 10-year range is probably trading the best today as inquiry remains for high-grade, clean bonds,” a trader said. “A better Treasury market definitely helps but the impetus at this point continues to be a lack of municipal issuance. Secondary trading is on the lighter side but we have stepped up in terms of activity from earlier in the week. Long bonds are also trading a bit, better but not as” ...continued (Clients - See Full Report) FREE TRIAL

Limited Issuance Makes For Gains
(INSIGHT: pub. February 16, 2011; 3:30p EST)
Municipal bonds improved again today on strong bids on several of the day’s bids-wanteds and solid investor interest in new issues:

”There have been a lot of bonds out for the bid today,” a trader said. “And we are seeing some real strong prints on some big blocks. Names like Wake non-calls in 2025, Denver GOs in 2019 and MARTAs looked pretty good and those prints appear to be helping the intermediate and longer parts of the curve gain some momentum today. We are not sure if this stuff is really” ...continued (Clients - See Full Report) FREE TRIAL

Firmer To Start
(INSIGHT: pub. February 16, 2011; 10:30a EST)
Municipal bonds posted modest gains this morning, especially on the front-end of the curve, while the Treasury market faded slightly:

”The most important thing is that we are definitely seeing more overall activity in the Street this morning,” a trader said. “The market is not going gangbusters or anything like that but clearly the secondary flow is improved. We are seeing a good bid for bonds around 10-years and also seeing good follow through on” ...continued (Clients - See Full Report) FREE TRIAL

Modest Gains Today
(INSIGHT: pub. February 15, 2011; 3:30p EST)
Municipal bonds gained modestly today with help from firm bids on today’s competitive loans and subsequent follow-through:

”With so little issuance coming our way the dealers bid somewhat aggressively on the competitive loans today,” a trader said. “It did help the overall market to a certain extent but the secondary is still lightly traded. Some accounts were able to unload some bonds into the firmer bids on the competitive loans. They got decent prices compared to where things have been trading lately, but they” ...continued (Clients - See Full Report) FREE TRIAL

PECOs to BOA-ML; Howard To Citi
(INSIGHT: pub. February 15, 2011; 10:30a EST)
Municipal bonds were lightly traded but with a better tone as the competitive market kept traders busy all morning:

”The Street is quiet but everyone is working on the competitive loans,” a trader said. “So far the levels show dealers stepping up to the plate and it is having a mildly positive impact on the overall market. I think we are a few better along with a” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Tone In Spots
(INSIGHT: pub. February 14, 2011; 3:30p EST)
Municipal bonds were little changed to firmer in spots as the New York State Environmental Facilities Corporation moved into taking institutional orders ahead of schedule:

”I see munis firmer today,” a trader said. “It is hard to say why exactly but you get the sense that there is some legitimate pent-up demand that is not getting tapped due to the paltry calendar. I think all the big boys are waiting to see what happens to this market once the supply flood gates open, but that is still” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. February 14, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed this morning as a New York issuer offered bonds to retail investors:

”The secondary is very light so far today and we don’t see many notable offerings out yet,” a trader said. “The levels on New York Environmental Facilities Corp. look a bit firmer than the marketing scale on Friday and with a touch of firmness in taxables, munis could be a bit” ...continued (Clients - See Full Report) FREE TRIAL

Firmer; NJ EDA Bumped
(INSIGHT: pub. February 11, 2011; 3:30p EST)
Municipal bonds improved slightly today following the lead of Treasuries while new issuance continues to be light:

”The firmer Treasury market and an absence of supply are supporting the long-end,” a trader said. “Credit spreads seem to continue to widen out but high-grades are better by as much as 4-basis points with more generic names improving about” ...continued (Clients - See Full Report) FREE TRIAL

NJ Prices Bonds
(INSIGHT: pub. February 11, 2011; 10:30a EST)
Municipal bonds were little changed to slightly firmer this morning as Treasuries improved:

”We look ahead to next week and take out the Illinois deal and we have yet another very light week in issuance,” a trader said. “As long as that continues we will continue to trade in current ranges and today with Treasuries up, I think there is a tendency to” ...continued (Clients - See Full Report) FREE TRIAL

Few Changes For Municipals
(INSIGHT: pub. February 10, 2011; 3:30p EST)
Municipal bonds were little changed today as Treasuries declined:

”Munis are unchanged here but for us there are some signs of underlying problems,” a trader said. “There is very little flow, there is no liquidity to sustain business and there is very little price discovery. People do not know what bonds are worth right here. We lack leadership on a broad scale. Yes, JPMorgan purchased the South Carolina loans and that” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Open
(INSIGHT: pub. February 10, 2011; 10:30a EST)
Municipal bonds were little changed and lightly traded this morning:

”It seems early yet for the market,” a trader said. “Most are focused on South Carolina, which is due out at 10:30 this morning. It is only $100 million GOs or so but at this point it is all we can focus on. If we have any indication from yesterday’s bids on state’s GOs, we are likely to see” ...continued (Clients - See Full Report) FREE TRIAL

Munis Little Changed By Day's End
(INSIGHT: pub. February 9, 2011; 3:30p EST)
Municipal bonds were little changed today as strong bids on the competitive slate along with strength in Treasuries helped shore up any weakness noted earlier in the day:

”Early on in the session we definitely had some weaker trades up front but that no longer seems to be the case,” a trader said. “The bid on South Carolina was firm and they were re-offered firmer so that helped to calm down the front-end. It is unclear if paper will move at these levels yet but strong” ...continued (Clients - See Full Report) FREE TRIAL

South Carolina to JPM; PR Upsized
(INSIGHT: pub. February 9, 2011; 10:30a EST)
Municipal bonds showed slight weakness up front this morning before JPMorgan purchased South Carolina general obligation bonds:

”Before the competitive loans, there was a tendency towards weakness 10-years and in,” a trader said. “This was likely because of South Carolina being heavily weighted up front, but we also saw last week’s North Carolina loan trading at concessions and a lot of that deal still appears to be” ...continued (Clients - See Full Report) FREE TRIAL

Weaker With Taxables
(INSIGHT: pub. February 8, 2011; 3:30p EST)
Municipal bonds declined 10-years and out today in sympathy with Treasury losses while the bulk of this week’s new deals came to market with mixed results:

”The secondary remains somewhat stuck here but clearly the sell-off in Treasuries is forcing offerings to give up a little more,” a trader said. “We definitely don’t have the cross-over bid playing a role here and without a major buyer in this market we drifted today. The new-issues also had mixed results with Ohio cutting levels pretty” ...continued (Clients - See Full Report) FREE TRIAL

Primary Leads The Way
(INSIGHT: pub. February 8, 2011; 10:30a EST)
Municipal bonds were again lightly traded and generally little changed in secondary activity while the new-issue market did offer something to work with:

”The market remains very thin in the Street so people are focusing on what we have in the primary,” a trader said. “It is not much but it is something and today we are seeing a good amount of names out there. Perhaps we are seeing some weakness in the” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker As Ohio Sells To Retail
(INSIGHT: pub. February 7, 2011; 3:30p EST)
Municipal bonds showed mild losses today amid very light trading while Ohio marketed bonds to retail investors:

”Municipals are definitely cheaper today but not by too much,” a trader said. “Treasuries are floundering and equities are clearly a retail favorite as the Dow is well over 12,000 points. So we lost ground today, particularly in the” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet
(INSIGHT: pub. February 7, 2011; 10:30a EST)
Municipal bonds were very lightly traded today but continued weakness in taxable markets is weighing on tax-exempts:

”The tape has very little to report so far today,” a trader said. “But you get the sense that municipals are weaker as Treasuries continue to take it on the chin. We should see some retail order periods later on but” ...continued (Clients - See Full Report) FREE TRIAL

Munis Weaker With Taxables
(INSIGHT: pub. February 4, 2011; 3:30p EST)
Municipal bonds lost modest ground today with the largest losses out long again as selling pressure and a weaker Treasury market had an impact:

”The long-end is fairly quiet today but with the Treasury market weaker, the bid-side has backed off,” a trader said. “We have our scale unchanged on the short-end of the curve but off 2- to 3-basis points out longer. The absence of any meaningful” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Start
(INSIGHT: pub. February 4, 2011; 10:30a EST)
Municipal bonds were very lightly traded and little changed this morning while the Treasury market weakened on an unexpected drop in the national unemployment rate:

”Munis have zero response to the move in Treasuries today,” a trader said. “We have zero supply coming but we continue to have modest selling pressure. The amount of bids-wanteds today is much less than” ...continued (Clients - See Full Report) FREE TRIAL

Munis Lose Ground 10-Years & Out
(INSIGHT: pub. February 3, 2011; 3:30p EST)
*Municipal bonds declined modestly 10-years and out today while new-issuance was minimal:

”I think the lack of new-issues is what keeps munis where they are,” a trader said. “With next week’s supply picture becoming clearer, and with yet another week of minimal issuance, sellers were less willing to” ...continued (Clients - See Full Report) FREE TRIAL

Secondary Sellers Weaken Long End
(INSIGHT: pub. February 3, 2011; 10:30a EST)
Municipal bonds declined out long today while Treasuries also lost ground:

”The long-end seems to be taking it on the chin this morning,” a trader said. “We are still seeing good inquiry and sponsorship in the front and the belly, but beyond 25-years is where the mutual funds look to be going through” ...continued (Clients - See Full Report) FREE TRIAL

TFAs Close As Munis Slightly Weaker In PM
(INSIGHT: pub. February 2, 2011; 3:30p EST)
Municipal bonds declined 10-years and out today as losses in Treasuries weighed on tax-exempts meantime the new-issue market saw a strong bid for North Carolina but large cuts on New York City TFA’s:

”First off, the secondary market remains very thin and that does make it hard to get a concrete read on munis but the losses in taxable markets are clearly having an effect,” a traders said. “Offerings have been cut and there are a variety of instances where bids are getting hit that” ...continued (Clients - See Full Report) FREE TRIAL

NYC TFA Cut Again; Market Waits On Competitive Loans
(INSIGHT: pub. February 2, 2011; 10:30a EST)
Municipal bonds were lightly traded and little changed ahead of a few competitive deals of note:

”Munis are sideways this morning with a slightly better bias to the bid-side,” a trader said. “We’ll take our direction from the competitive loans. We’ve got North Carolina, taxable TFAs and Santa Fe due out today. The Street is relatively light when it comes to blocks but the buy-side is very” ...continued (Clients - See Full Report) FREE TRIAL

Munis Weaker In Spots
(INSIGHT: pub. February 1, 2011; 3:30p EST)
Municipal bonds cheapened modestly today in response to a second session of Treasury losses meantime the primary saw mixed reception:

”Selling pressure has remained contained today but it is day two of a weaker Treasury market and it weighed on a lot of the offerings that have been sitting out there for a while,” a trader said. “Some names are unchanged but others are off a” ...continued (Clients - See Full Report) FREE TRIAL

NYC TFA Prices To Retail
(INSIGHT: pub. February 1, 2011; 10:30a EST)
Municipal bonds were again very lightly traded this morning and generally little changed while taxables declined:

”We are seeing guys loosen up on the offer-side a bit with the losses in Treasuries but overall the market is more little changed with not a lot of trading,” a trader said. “I’ve seen some people willing to look at” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet Trading Session
(INSIGHT: pub. January 31, 2011; 3:30p EST)
Municipal bonds were lightly traded and little changed today:

”Munis are doing very little today,” a trader said. “Even with Treasuries trading weaker this afternoon, the tax-exempt market is staying put and the Street has seen little activity. We have not seen the type of selling pressure we’ve had of” ...continued (Clients - See Full Report) FREE TRIAL

NYC TFA Prices To Retail
(INSIGHT: pub. January 31, 2011; 10:30a EST)
Municipal bonds were very lightly traded this morning while the primary started quickly this week:

”I can count the amount of block trades I see this morning on one hand,” a trader said. “The Street has just not started up yet. We will see how TFA’s do with retail today and go from there.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Better In Spots
(INSIGHT: pub. January 28, 2011; 3:30p EST)
Municipal bonds were very lightly traded today but exhibited a firmer tone in spots in sympathy with taxables:

”We see the muni market as slightly better,” a trader said. “Maybe 1- or 2-basis points as we get support from Treasuries. With the 10-year triple-A over 100% of the 10-year Treasury bond, the relative value is” ...continued (Clients - See Full Report) FREE TRIAL

Very Quiet
(INSIGHT: pub. January 28, 2011; 10:30a EST)
Municipal bonds were little changed on very light trading this morning:

”The Street is dead quiet so far,” a trader said. “The same lists are still floating around and we have not heard or seen much on the week’s competitive loans. Treasuries have been a bit cheaper most of the morning but that is” ...continued (Clients - See Full Report) FREE TRIAL

Munis See Little Activity
(INSIGHT: pub. January 27, 2011; 3:30p EST)
Municipal bonds were little changed today while Treasuries firmed; meantime Columbia University and the Port Authority of New York and New Jersey priced bonds in the primary market:

”The Street is absent at this point,” a trader said. “Very little trading in the secondary but our two big primary deals received a good reception. Columbia is a credit people know and the Port Authority credit was bought at slightly” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Open
(INSIGHT: pub. January 27, 2011; 10:30a EST)
Municipal bonds were little changed and lightly traded this morning:

”Columbia University came out with retail levels and the market is waiting on how the Port Authority deal goes,” a trader said. “The Street so far is very quiet and that is enhanced with the storm on the East coast. Some thought we might capitulate to the” ...continued (Clients - See Full Report) FREE TRIAL

Munis Ignore Taxable Sell-Off
(INSIGHT: pub. January 26, 2011; 3:30p EST)
Municipal bonds were little changed to slightly better beyond 10-years today as the Treasury market sold off:

”Munis are better by a few 10-years and out today,” a trader said. “Up front there is just no real retail presence anywhere at this point so it is more unchanged. Farther out though, you still have a cross-over presence and hedge-fund types but when that trade runs dry, munis could be in trouble as we continue to” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Better
(INSIGHT: pub. January 26, 2011; 10:30a EST)
Municipal bonds were slightly firmer today as taxables declined:

”I have the muni market tighter by a few this morning,” a trader said. “The price action overall seems to be positive but we still have some large sellers out there showing” ...continued (Clients - See Full Report) FREE TRIAL

Munis Gain Today
(INSIGHT: pub. January 25, 2011; 3:30p EST)
Municipal bonds extended gains as the day progressed on a strong bid and subsequent follow-through on Fairfax County along with a stronger taxable market:

”The bid on Fairfax was particularly strong and some of the levels on the longer parts of that deal that were not re-offered looked especially strong,” a trader said. “So far it looks as if they are moving it along as well so clearly customers are” ...continued (Clients - See Full Report) FREE TRIAL

Firmer Open; Fairfax Coming
(INSIGHT: pub. January 25, 2011; 10:30a EST)
Municipal bonds were little changed to firmer today as the market waits on the competitive slate:

”Municipals are definitely seeing a firmer start,” a trader said. “It is certainly helping that govies have been up the last two days. Word is that fund outflows have" ...continued (Clients - See Full Report) FREE TRIAL

Quiet Overall
(INSIGHT: pub. January 24, 2011; 3:30p EST)
Municipal bonds were little changed to firmer out long today while Treasuries were range-bound:

”The municipal market is pretty quiet today as the Street waits for this week’s calendar to heat up,” a trader said. “We see the long-end as unchanged. The pace of outflows seems to have slowed but there is” ...continued (Clients - See Full Report) FREE TRIAL

Quiet To Start
(INSIGHT: pub. January 24, 2011; 10:30a EST)
Municipal bonds were little changed today although some traders noted a firmer tone out long while taxables were mixed but range-bound:

”So far the Street is pretty quiet today,” a trader said. “We are still seeing some cross-over interest out long and some retail activity up front but there has not been enough activity to indicate any across-the-board type of changes to the general high-grade market.”

”Last week the muni markets saw steady gains, especially on the long-end despite more outflows and selling pressure from the mutual funds,” a trader said. “The ratios looked way too” ...continued (Clients - See Full Report) FREE TRIAL

Negative headlines continued to inhibit broad individual demand for municipal bonds
(INSIGHT: pub. January 21, 2011; 3:00p EST)
Fortunately, crossover investors were more comfortable with the opportunity provided by the prolonged adversity. Benchmark yields posted solid gains, with special attention focused on the longer maturities. In recent weeks the municipal curve has steepened to challenge the record high established in January 1982, 440 bps. Leading the correction to higher yields in the ...continued (Clients - See Full Report) FREE TRIAL

Municipal Bond Market Held Steady
(INSIGHT: pub. January 20, 2011; 3:00p EST)
The municipal bond market held steady with a better balance between sellers and buyers. The urgency associated with secondary selling was tempered and the primary calendar remained light. In addition, with the emergence of more balance regarding state fiscal crisis in the media (notably MMA on CNBC see link to the left and FOX Business this week) investors began to look at opportunities—nearly the most attractive yields in 5 years. Municipal credits also received support from a ...continued (Clients - See Full Report) FREE TRIAL

Bids-wanted par surged
(INSIGHT: pub. January 19, 2011; 3:00p EST)
Bids-wanted par surged and some funds experienced there largest single day redemptions of this bearish cycle (since Labor Day).

$450M NYC Water re-priced to 6 bps stronger after demand steady at attractive levels

CA & IL mayors commented on sustained fiscal pressures on local GO's at US Conference of Mayors

Municipal bids-wanted par > $1B, so that the 10-day average rivaled the record peak in mid-December ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker Into Afternoon
(INSIGHT: pub. January 18, 2011; 1:00p EST)
Municipal bonds declined modestly today amid continued selling pressure and in sympathy with losses in the Treasury market:

”We are definitely seeing more bids-wanteds from the mutual funds but today is seems to be a bit more manageable,” a trader said. “Out long we actually saw a few stronger trades on high-grades but since then we’ve seen more concessions. With taxable markets fading the outlook for munis does not look so bright after what happened last week.” ...continued (Clients - See Full Report) FREE TRIAL

Week Finishes With More Losses
(INSIGHT: pub. January 14, 2011; 3:30p EST)
Municipal bonds lost ground again today as sellers pressured a generally illiquid secondary ahead of the extended weekend:

”Municipals continue to be inundated with selling pressure from a variety of sectors and it is cheapening up everything,” a trader said. “All week we’ve had the same funds putting out lists and today is really not any different. Maybe the total amount is a bit less but to clear bonds you have to” ...continued (Clients - See Full Report) FREE TRIAL

More Sellers
(INSIGHT: pub. January 14, 2011; 10:30a EST)
Municipal bonds lost ground this morning amid continued selling pressure in spite of a stronger taxable market:

”I turn on the Bloomberg this morning and see the lists right from the get-go,” a trader said. “Mutual funds have to raise cash. But it is not only the funds, it is the dealers and private wealth guys as well. There is a confluence of rising rates, no more BABs out long and the real big deal is continued negative headlines on the credit of our product. Credit is the real story and right now we are in” ...continued (Clients - See Full Report) FREE TRIAL

Another Rough Session
(INSIGHT: pub. January 13, 2011; 3:30p EST)
Municipal bonds sold-off 10-years and out today amid continued selling pressure into an illiquid secondary while new-issues struggled to find support:

”Today we saw more signs of forced selling,” a trader said. “The process has generally been orderly this week but today we clearly saw a few funds just kicking bonds out the door so this made for a very difficult secondary market as some state GO names in” ...continued (Clients - See Full Report) FREE TRIAL

More Cuts In Primary; More Selling In Secondary
(INSIGHT: pub. January 13, 2011; 10:30a EST)
Municipal bonds sold-off out long again and were weaker farther in as well as the market continues to struggle:

”At this point we have not found a bottom,” a trader said. “And it doesn’t appear that we are anywhere close. The new-issues continue to cut levels to entice buyer interest and the competitive loans are mostly trading cheaper to move the bonds along. Selling pressure is apparent again with" ...continued (Clients - See Full Report) FREE TRIAL

Munis Sell-Off Out Long
(INSIGHT: pub. January 12, 2011; 3:30p EST)
Municipal bonds declined today with large losses out long as new-issuance continues to adjust levels and secondary sellers move the market cheaper:

”Weakness in Treasuries, negative headlines and redemptions are driving the bus today,” a trader said. “There may be some cash on the sidelines but it is being very patient. Sellers, however, are getting” ...continued (Clients - See Full Report) FREE TRIAL

Big Cuts On NJ; Competitive Loans Coming
(INSIGHT: pub. January 12, 2011; 10:30a EST)
Municipal bonds opened up with a weaker tone again with taxable markets as traders wait for two large competitive deals to price later this morning:

”The bids on Wisconsin and Seattle will be very telling,” a trader said. “New Jersey was forced to basically start over with the levels. In the secondary, trading actually has been on the lighter side so far today in part because of the weather in New York but also because people want to see” ...continued (Clients - See Full Report) FREE TRIAL

Market Declines Out Long; Secondary Difficult
(INSIGHT: pub. January 11, 2011; 3:30p EST)
Municipal bonds declined 10-years and out today along with taxable markets as the muni secondary struggled under the weight of sellers and new-issue distribution.

”No one is adding muni bonds right now; there are just not any buyers out there,” a trader said. “So much for the early January muni performance the market is accustomed to seeing. It has been all negative since the year started without much calendar so I can’t wait when we” ...continued (Clients - See Full Report) FREE TRIAL

NJ & NY Offer Bonds To Retail
(INSIGHT: pub. January 11, 2011; 10:30a EST)
Municipal bonds opened with a weaker tone with taxables as two of the largest loans scheduled this week offered bonds to retail investors:

”A weaker day for Treasuries doesn’t help at all,” a trader said. “The Street is already looking at secondary selling, credit issues and some balances on recently issued deals. The tone is definitely weaker today but so far nothing more than 3- or 4-cheaper. The long-end is clearly having the most” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Out Long
(INSIGHT: pub. January 10, 2011; 3:30p EST)
Municipal bonds declined 15-years and out today as secondary markets struggled with some of last week’s supply and selling pressure:

”Out long the market is struggling today,” a trader said. “There are just a lot of prints out there indicating losses. Between mutual fund selling in the secondary, dealers not willing to do that much and the fade in taxable markets this afternoon, munis are taking” ...continued (Clients - See Full Report) FREE TRIAL

NYC TFA Prices For Retail
(INSIGHT: pub. January 10, 2011; 10:30a EST)
Municipal bonds were little changed this morning while the New York City Transitional Finance Authority kicked off the primary this week with $875 million bonds offered to retail investors:

”The secondary is quiet and thus little changed at this point although we are seeing some signs that weakness might continue to be the story this week,” a trader said. “A good amount of the longer-dated Florida Board of Ed bonds are trading cheaper today and clearly the threat of” ...continued (Clients - See Full Report) FREE TRIAL

Munis Decline Today
(INSIGHT: pub. January 7, 2011; 12:30p EST)
Municipal bonds maintained losses into the early afternoon as secondary selling pressure continued:

”The Street feels illiquid right here aside from the bids-wanteds,” a trader said. “It is not more than we’ve seen in the past few weeks but still it is adding pressure to the market. The jobs report had no real impact and so we still remain a market inundated with mutual funds selling bonds.” ...continued (Clients - See Full Report) FREE TRIAL

Slightly Weaker Open
(INSIGHT: pub. January 7, 2011; 10:30a EST)
Municipal bonds traded with a weaker tone this morning as selling pressure emerged yet again:

”We are a bit cheaper again,” a trader said. “The 10- to 15-year range looks to be especially under some pressure as mutual funds are selling in that range specifically. The jobs numbers did little to move the general markets but munis are still dealing with fund redemptions.” ...continued (Clients - See Full Report) FREE TRIAL

Munis Decline Modestly
(INSIGHT: pub. January 6, 2011; 3:15p EST)
Municipal bonds declined today amid secondary selling pressure ignoring strength in the Treasury market:

”I don’t know that Carolina’s or Maryland’s would be 3- or 4-basis points cheaper but I think the general high-grade market is,” a trader said. “We may even be cheaper than that but price discovery remains limited right here. Mutual funds continue to be large” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Open
(INSIGHT: pub. January 6, 2011; 10:30a EST)
Municipal bonds opened with a weaker tone across the curve today as selling pressure continues:

”High-grades look to be under pressure again despite the Treasury market finding stable ground,” a trader said. “We’ve seen some dealers clearing positions at cheaper levels especially on state GOs names on the front-end of the curve. Outside of that, we just see continued mutual fund” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. January 5, 2011; 3:15p EST)
Municipal bonds traded with a firmer tone today amid a lack of new-issuance and a stable taxable market:

”One guy in particular has a lot of offerings today, especially 10-years and in,” a trader said. “Most of those bonds are getting strong bids and I’d say that part of the curve is better by a few. Overall the secondary is thin though and we have” ...continued (Clients - See Full Report) FREE TRIAL

Weaker Out Long
(INSIGHT: pub. January 5, 2011; 10:30a EST)
Municipal bonds traded with a weaker tone out long today as the Treasury market sold-off early:

”There are some sellers out long today,” a trader said. “Some of the larger blocks were sold at levels that clearly indicate the losses in taxables are taking a toll. MBTA’s and Salts outside of 20-years were the blocks that most guys are eyeing. As for up front though, the high-grade market looks more” ...continued (Clients - See Full Report) FREE TRIAL

Firmer In Spots
(INSIGHT: pub. January 4, 2011; 3:15p EST)
Municipal bonds traded with a firmer tone today amid a lack of new-issuance and a stable taxable market:

”One guy in particular has a lot of offerings today, especially 10-years and in,” a trader said. “Most of those bonds are getting strong bids and I’d say that part of the curve is better by a few. Overall the secondary is thin though and we have” ...continued (Clients - See Full Report) FREE TRIAL

Quiet Open
(INSIGHT: pub. January 4, 2011; 10:30a EST)
Municipal bonds opened in light trading with a firmer tone in spots as the new-issue market remains on the quiet-side:

”Munis are trading in sideways fashion today, with most activity inside of 10-years,” a trader said. “The Street offer-side is bullish and quite frankly too high to spur any real trading activity. I have seen small appreciation in ...continued (Clients - See Full Report) FREE TRIAL

Unch To Slightly Firmer Around 10-Years
(INSIGHT: pub. January 3, 2011; 3:15p EST)
Municipal bonds remained little changed today as some selling pressure emerged but the primary was dormant:

”One guy had a list out but it was not huge,” a trader said. “But it did make for most of the blocks that traded 15-years and out today. Some bids around 10-years early on did show some strength so we might call that part of the curve a little better. With so little issuance coming” ...continued (Clients - See Full Report) FREE TRIAL

Munis See Few Changes As Taxables Decline
(INSIGHT: pub. January 3, 2011; 10:30a EST)
Municipal bonds opened the year with lighter trading and few changes as the Treasury market sold off:

”There is very little issuance scheduled this week,” a trader said. “So with such large taxables losses early on, there is still a bid for munis. Most are willing to sit on the sidelines here given the volatility in other markets. Still, we see some” ...continued (Clients - See Full Report) FREE TRIAL

“The bank portfolios are dominating the marketplace,” said Tom Doe, CEO of Municipal Market Advisors, an independent researcher in Concord, Massachusetts. “They are taking the bonds you want and establishing the levels at which you buy.”

By the end of March, tax-exempt interest rates had reversed a surge that began in the previous September, just before Whitney’s eponymous firm issued a report on the market. By Dec. 12, the yield on the 10-year Municipal Market Advisors index of top-rated debt fell 113 basis points, or 32 percent, from this year’s high of 3.5 percent on Jan. 18. A basis point is 0.01 percentage point. Yields decline when bond prices rise. Bloomberg.com

Players Eye Buying American
(SPECIAL: pub. December 12, 2011;)
With trading active on much of bankrupt American Airlines’ $3.2 billion of special facilities revenue bonds, some market participants are sounding a cautionary tone in assessing their value, as bargain hunters eye the airline’s discounted bonds secured by collateral.

“What happens in bankruptcy is unpredictable,” said analyst Matt Fabian, a managing director at Municipal Market Advisors. “You don’t know how the stakeholders will interact” as airports, the airline and bondholders are pitted against one another. BondBuyer.com

Muni Funds Grow Most in 21 Months
(SPECIAL: pub. December 9, 2011;)
Investors are adding cash to municipal funds to tap into the rally in the $3.7 trillion market and to boost assets they deem relatively safe before month-end, said Matt Fabian, managing director of Concord, Massachusetts-based Municipal Market Advisors, in a telephone interview. Bloomberg.com

Municipal-Bond Defaults May Beat Record High in 2011, Richard Lehmann Says
(SPECIAL: pub. December 6, 2011;)
Municipal-bond defaults, including bankruptcies and the use of reserve funds for payments, may set a record this year as tobacco bonds and AMR Corp. (AMR)’s Chapter 11 filing push the total to more than double the previous mark, said Richard Lehmann, publisher of the Distressed Debt Securities Newsletter.

Not all analysts put AMR and tobacco debt in their totals for defaults in the $2.9 trillion market, because payments to investors haven’t been officially missed, said Matt Fabian, managing director of Municipal Market Advisors in Concord, Massachusetts. Fabian, who compiles payment defaults, said those have reached $2.1 billion this year, down from about $2.8 billion in 2010. Bloomberg.com

Will the Muni-Bond Rally Survive 2012?
(SPECIAL: pub. November 28, 2011;)
The Mainstreaming of Chapter 9 Bankruptcy: Most observers have always thought of Chapter 9 bankruptcy as something to be avoided. The process is interminable—Vallejo, Calif., only emerged from bankruptcy this year after filing in 2008—and it usually doesn’t solve the financial problems that got it there in the first place. But when Jefferson County, Ala., filed for Chapter 9, it “headed in a more interesting direction than the market would like,” wrote Municipal Market Advisors’ Matt Fabian and Lisa Washburn in a Nov. 21 note. The insolvent county has filed “petitions to wrest control of its asset s from the receiver and the trustee,” they wrote, that “if approved by the court, would only encourage other issuers to seek protection under Chapter 9.” The end result, they say, could end up hitting revenue bonds particularly hard if investors and portfolio managers decide they should be discounted for the risk of more Chapter 9s. WSJ.com

Jefferson County bankruptcy: Sewer receiver John Young's role to be focus of hearing today
(SPECIAL: pub. November 21, 2011;)
The case is being closely watched nationally, as will be the first major salvo scheduled for today, said Matt Fabian, a managing director of Massachusetts-based Municipal Market Advisors, which counsels both bond buyers and sellers on public debt markets.

He said his firm has for some time been warning prospective buyers of municipal bonds to be wary of Alabama debt. That, he said, is because Alabama cities and counties lack the ability to raise taxes and utility rates to keep up with bond obligations without the consent of the state Legislature. AL.com

Get 4% Yields, Tax Free
(SPECIAL: pub. November 11, 2011;)
For these reasons and others, like the possibility of sudden credit downgrades, all but the most experienced bond investors should look for a reputable adviser who specializes in munis, says Matt Fabian of Municipal Market Advisors, a consultancy based in Concord, Mass.

Mr. Fabian pointed out two bonds as examples of a long and safe issue and a shorter one with a lower credit rating. The New York City Transitional Finance Authority, rated AAA ("extremely strong") by Standard & Poor's, has bonds that mature in 20 years but can be repaid early (or "called") in 10. The "yield to call" is 3.92%.

For a shorter bond with a slightly lower rating, the Allegheny County Hospital Development Authority of Pennsylvania, rated AA- ("very strong"), has five-year bonds that yield 2.14%. Inexperienced bond buyers should stick with AA- and higher ratings, says Mr. Fabian. WSJ.com

Alabama Governor Fails to Prevent County’s Record $4 Billion Bankruptcy Filing
(SPECIAL: pub. November 9, 2011;)
Matt Fabian, of Municipal Market Advisors, also said he was surprised to see the county’s creditors trying to compel all new homes in the county to join the sewer system, to swell the rate base.

“It’s something they should have done 50 years ago, but putting it on there now was a problem,” he said. “The value of all new property would drop.”

Mr. Fabian said investors were also wary of the Alabama’s “moral obligation” to help Jefferson County honor its debts, because it did not involve a pledge of new money from the state. NYTimes.com

http://www.nytimes.com/2011/11/10/us/alabama-governor-fails-to-prevent-jefferson-countys-record-4-billion-bankruptcy-filing.html?_r=1
(SPECIAL: pub. October 31, 2011;)
Matt Fabian, managing director at Municipal Market Advisors, talks about the municipal bond market and investment strategy.

Fabian speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." David Kotok, chief investment officer at Cumberland Advisors Inc., also speaks. Bloomberg.com

Default-Prone Project Bonds Paying 8% Yield Luring Investors: Muni Credit
(SPECIAL: pub. October 20, 2011;)
Conduits made up just 17 percent of the $2.3 trillion of municipal bonds sold since 2007, according to data compiled by Bloomberg. Still, almost half of the 78 defaults this year have been conduits, according to Matt Fabian, managing director with the Concord, Massachusetts-based research firm Municipal Market Advisors. Only one general-obligation bond defaulted, according to Fabian: Brighton, Alabama, a city of 2,945 near Birmingham. Bloomberg.com

California boosts yields on muni bond sale to lure investors
(SPECIAL: pub. October 19, 2011;)
“Retail investors are deeply ambivalent about bonds at these yields,” said Matt Fabian, an analyst at research firm Municipal Market Advisors in Concord, Mass. LATimes.com

New York’s Borrowers Look Past 2040 as Rally Fuels Bond Sales: Muni Credit
(SPECIAL: pub. October 13, 2011;)
“The long end remains very aggressively priced and issuer- friendly,” said Matt Fabian, managing director with Municipal Market Advisors, a Concord, Massachusetts-based research firm. “There’s little supply out there and there’s a fair amount of interest in owning munis from banks and insurance companies who are looking for long-lived assets.” Bloomberg.com

PhillyDeals: Harrisburg presses fight for bankruptcy
(SPECIAL: pub. October 13, 2011;)
The city's move is an attempt to pressure bond insurers Assured Guaranty Municipal Corp. and Ambac Financial Group Inc. and other creditors into paying as much as $100 million of the city's $300 million-plus in outstanding debt, after deeply indebted Jefferson County, Alabama, won similar concessions, analyst Matt Fabian told clients of his Connecticut firm, Municipal Market Advisors. Philly.com

Super-Downgraded Bonds Defying Default Attract Wells Capital: Muni Credit
(SPECIAL: pub. October 11, 2011;)
It’s rare for municipal governments to be downgraded more than one or two levels. Moody’s Investors Service had none exceeding that in 2007, a year before the bankruptcy of Lehman Brothers Holdings Inc. collapsed credit markets.

Super-downgrades of three levels or more are driven by bond raters catching up to a municipality’s fiscal condition and are often “telegraphed” in financial statements, said Matt Fabian, a managing director at Concord, Massachusetts-based Municipal Market Advisors. Bloomberg.com

Dexia Bailout Rumors Not Likely to Scar U.S. Market
(SPECIAL: pub. October 5, 2011;)
Dexia has cut its exposure to the U.S. muni market to $10 billion in letters of credit and liquidity facilities from over $54 billion at its peak in 2008. The decrease in exposure has come as issuers in the United States have been busy restructuring debt backed by Dexia.

“This is, at worst, a modest negative for the muni sector,” said Matt Fabian, managing director at Municipal Market Advisors. “Issuers need time to finish restructuring away from Dexia. At worst, their bonds will become bank bonds and accelerate the process.”

The biggest downside will be for the bank itself, he said, which has been working on a larger restructuring. “Any puts that happen will worsen their cash crisis,” Fabian said. BondBuyer.com

Whitney Gets One Out of Billions Right With Wrong Market Call: Muni Credit
(SPECIAL: pub. September 29, 2011;)
Whitney, the banking analyst who predicted Citigroup Inc.’s 2008 dividend cut, said on “60 Minutes” on Dec. 19 that there would be “hundreds of billions of dollars” of municipal defaults within 12 months.

Data from Hallacy, Standard & Poor’s and Municipal Market Advisors show the opposite.

The city is the only general-obligation issuer to default this year, according to Matt Fabian at MMA, a financial-research company based in Concord, Massachusetts. Bloomberg.com

Supercommittee May Take Up Obama’s Threat to Muni-Bond Tax Break
(SPECIAL: pub. September 23, 2011;)
Whether Obama’s proposal succeeds in limiting the exemption to 28 percent of interest earnings, down from 35 percent now, for couples earning more than $250,000 a year, his inclusion of the curb raises the chance that the supercommittee will consider it, said Matt Fabian, managing director with Municipal Market Advisors, a Concord, Massachusetts-based research firm.

“This should confirm that fear that the tax exemption could be affected,” Fabian said. Bloomberg.com

Obama Proposal Stuns Market
(SPECIAL: pub. September 14, 2011;)
Matt Fabian, a managing director at Municipal Market Advisors, said state and local issuers could end up paying about $10 billion in additional interest costs over the life of their bonds.

The estimate is based on two assumptions: that an investor who wants to buy a 5% coupon bond and is paying a 28% tax rate would need to receive an extra 50 basis points to replicate the after-tax current yield produced with a 35% marginal rate; and that the market returns to a more normal rate of issuance of about $300 billion per year. BondBuyer.com

Hundreds of municipal downgrades are next. But don't panic
(SPECIAL: pub. August 8, 2011;)
That's exactly why S&P began to take action Monday: It stripped AAA ratings from Miami; Tacoma, Wash.; Atlanta Downtown Development Authority; and the Board of Governors of the University of North Carolina.

But it won't stop there. By the time S&P completes all the necessary downgrades, it will have affected about $150 billion worth of municipal bonds, or about 3% of the entire muni market, according to Matt Fabian, managing director at consulting firm Municipal Market Advisors in Concord, Mass.

While investors understand that the U.S. credit rating is a reflection of macroeconomic or political factors and not necessarily default risk, ratings of municipal bonds are based on default risk alone, said Fabian.

"The financial market is changing, and there will be increased volatility over the next few weeks," Fabian said. "But the default risk of municipal bonds has not increased, so it's better for investors to wait and not do much of anything." CNN.com

Next on the downgrade docket for S&P are municipalities and financials
(SPECIAL: pub. August 8, 2011;)
Shortly after the US was downgraded on Friday night, Matt Fabian of Municipal Market Advisors came out and stated that there are hundreds of municipalities that are setup for a downgrade, and judging by the number of cities that have recently filed, or plan to file bankruptcy in America, this assessment is not far off the mark.

While the impact on Treasurys as a result of the downgrade may be limited (after all the other side of the Atlantic is about as ugly as the US, so where could $8 trillion in marketable USTs practically go... at least for now), the same may not be said about the far smaller, $2.9 trillion municipal market, which is about to see a blanket downgrade tomorrow as S&P warned on Friday night, and of which Matt Fabian of Municipal Market Advisors earlier said that "There will be hundreds and hundreds of municipal downgrades, which will not do well to bolster investor confidence." The scary bit: "Treasuries may be able to shake off a real impact from the downgrade. Munis I’m less sure about." - Examiner.com

More Mayhem for Munis?
(SPECIAL: pub. July 27, 2011;)
A debt downgrade would be a tough blow for muni bonds, which have just recently begun to recover after investors bailed from the market last winter over fears of widespread defaults. Municipal bond funds have seen inflows of $1.2 billion in June and July, after seven consecutive months of outflows totaling nearly $50 billion, according to Lipper. "The states and the credits that area already struggling will wind up struggling more," says Matt Fabian, managing director of Municipal Market Advisors, an independent research group. Smartmoney.com

Investments Muddy Dirt-Bond Holders
(SPECIAL: pub. July 20, 2011;)
Bond defaults began accelerating as the global economy tanked. An estimated more than $5 billion in dirt bonds are in default, according to Matt Fabian, managing director at research firm Municipal Market Advisors. In California, about 4.3% of the $6 billion in bonds issued by municipalities in California from 2005 to 2009 are in default, according to investment bank Stone & Youngberg LLC. WSJ.com

Meredith Whitney Loses Credibility as Muni Defaults Fall 60%
(SPECIAL: pub. July 15, 2011;)
The data is not helping Meredith,” said Matt Fabian, a managing director at Municipal Market Advisors, a financial- research company based in Concord, Massachusetts. “It’s always been a possibility there would be a wave of defaults. You can’t say that it’s zero but it’s given no sign of starting. Bloomberg.com

Citigroup Blames Uncounted $800 Billion for Unstable Market: Muni Credit
(SPECIAL: pub. June 10, 2011;)
Municipal Market Advisors Inc. analyst Matt Fabian said he has no reason to challenge Citigroup’s estimate and is unsure what the consequence of the revised size would be, except that it may give bondholders the leverage to block any attempt by Congress to strip the securities of their federal tax-exempt status.

“The muni market has a long history of working with data that carries caveats,” he said. “We’re used to data that is somehow not just what we’d like. So the Fed data is more of that.” Bloomberg.com

Market Close: Analysts Believe Rally Has Legs
(SPECIAL: pub. May 13, 2011;)
Tom Doe, chief executive at Municipal Market Advisors, estimates that $50 billion and $27 billion will mature in June and July, respectively, not including coupon reinvestment.

He noted that municipal prices typically improve this time of year as reinvestment money gets harvested.

MMA managing director Matt Fabian added that new supply has been low enough for there to be “ready-to-spend cash” lingering in accounts.

“So it’s going to be a steady pressure richer, especially if summer supply wanes like usual,” Fabian added.

But he also considers the market to be overbought, making for an environment that is “extraordinarily risky” for buyers.

“The trick is not to buy into spread tightening trades when you think the benchmark is too rich,” he said via email. “It may get richer when reinvestment increases, but the trend doesn’t have to parallel normal seasonal trends, because normally, the market isn’t already so rich.” BondBuyer.com

Congress should loosen its fiscal reins on D.C.
(SPECIAL: pub. May 11, 2011;)
In testimony prepared for Thursday’s hearing, Alice M. Rivlin, senior fellow of economic studies at the Brookings Institution, details the city’s journey from “a financial basket case to a responsibly managed and fiscally healthy city.” As chair of the federal control board, Ms. Rivlin had a close view of city finances, and she believes D.C. residents and officials learned their lessons: “For more than a dozen years, D.C. has been a model of fiscal responsibility.” Matt Fabian, managing director of the independent research firm Municipal Market Advisors, said the District operates in “a highly conservative manner” with a strong financial management team and institutionalized financial controls. Even as the economy struggled, he found the District faring better than most other cities and states. WashingtonPost.com

Fabian Says Jefferson County `Probably' Won't Default
(SPECIAL: pub. May 5, 2011;)
Bloomberg (video)

As Debt Ceiling Isn't Raised, 'Headache' For Cities, States Begins Friday
(SPECIAL: pub. May 4, 2011;)
State and local governments have bought $23 billion in SLGS so far this year, and they have issued $62 billion in debt, according to Thomson data provided by Matt Fabian, managing director of the Concord, Mass.-based Municipal Market Advisors. These specialized securities are a handy tool for governments, Fabian said. Huffingtonpost.com

‘Dumb Money’ Flees Muni Funds as Investors Buy Single Bonds
(SPECIAL: pub. May 3, 2011;)
New issuance has fallen off the face of the earth,” said B. Craig Elder, a fixed-income senior analyst for Milwaukee- based Robert W. Baird & Co. Private Wealth Management, which manages almost $63 billion. Elder said he has been purchasing general-obligation bonds from AAA rated states such as Missouri for Baird’s clients.

About $45 billion in municipal securities were issued in the first three months of 2011, compared with about $87 billion in the first quarter of 2010, according to Thomas Doe, chief executive officer at Concord, Massachusetts-based Municipal Market Advisors. BusinessWeek.com

Bond Funds to Avoid as Rates Rise
(SPECIAL: pub. April 29, 2011;)
Long-term national municipal bond funds and high-yield muni bond funds are second (and third) to long-term government bond funds in interest-rate sensitivity (measured by what's called "duration), according to Morningstar. That's because muni fund managers often invest heavily in longer-dated municipal bonds to lock in more attractive yields a strategy that paid off handsomely when interest rates were falling. But the reverse is also true, says Thomas Doe, chief executive officer of research firm Municipal Market Advisors. "When interest rates rise, prices will fall, and there will be a penalty," says Doe. "You'll have greater volatility." SmartMoney.com

Austerity Chills the Ardor for Muni Debt
(SPECIAL: pub. April 20, 2011;)
"The decline in issuance is a reflection of states managing through a crisis in a very prudent way," said Thomas Doe, chief executive of research firm Municipal Market Advisors.

The austerity adopted by some governments could change if the economic recovery accelerates, potentially encouraging a return to more borrowing for stalled or abandoned projects, he says. State tax collections, for instance, continued to rise in January and February, in part from tax increases, but remain below the precrisis peak. WSJ.com

Fed’s Biggest Foreign-Bank Bailout Kept U.S. Municipal Finance on Track
(SPECIAL: pub. April 6, 2011;)
“If Dexia went bankrupt, it could have been a catastrophe for municipal finance and money funds,” said Matt Fabian, a Concord, Massachusetts-based senior analyst and managing director at Municipal Markets Advisors, an independent research company. “The market has extensive exposure to foreign banks.” Bloomberg.com

April Won't Be Cruelest for Muni Investors
(SPECIAL: pub. March 29, 2011;)
The muni market often hits a soft patch around tax time as investors liquidate holdings to raise cash to pay Uncle Sam. That weakness could be all the more unsettling now given the recent tumult in muni markets and still anemic demand.

Indeed, Thomas Doe , chief executive of Municipal Market Advisors, projects through mid-May yields may increase about 0.2 percentage point for shorter-dated debt and about 0.10 percentage point for longer maturities. This means prices will fall because bond yields and prices move in opposite directions. MarketWatch.com

A Deep Freeze Hits Muni-Bond Market
(SPECIAL: pub. March 9, 2011;)
Without more supply, you don't know how sustainable those recent pricing gains are," said Matt Fabian, managing director at Municipal Market Advisors, a research and advisory firm based in Concord, Mass. The lack of supply has hurt liquidity, he says, because bigger buyers are more reluctant to participate without large sales that can confirm price levels. WSJ.com

Opportunity in a Muni Maelstrom
(SPECIAL: pub. March 5, 2011;)
Some of the trades in this market have been very sweet lately,” said Matt Fabian, managing director of the research firm Municipal Market Advisors. Muni yields began rising in November, and prices, which move in the opposite direction, fell, hitting a trough on Jan. 14, he said. NYTimes.com

When Cities Struggle, Workers Punished -- But Bondholders Spared
(SPECIAL: pub. March 3, 2011;)
Cities simply don't walk away from debt," said Matt Fabian, managing director of Municipal Market Advisors, a Concord, Mass.-based research firm. "They haven't walked away from debt since before the Depression. Even in the Depression, bondholders were ultimately paid back."

Instead, cities have mined payrolls for savings. Since August 2008, state and local governments have eliminated 426,000 jobs, according to a recent report from the Center on Budget and Policy Priorities. HuffingtonPost.com

Roubini’s Firm Sees Fewer Muni-Bond Defaults Than Whitney
(SPECIAL: pub. March 2, 2011;)
Defaults will be restricted to unrated issues and junk- rated revenue bonds, the firm said. That’s in line with market conditions, Matt Fabian, managing director at Concord, Massachusetts-based Municipal Market Advisors, said at a conference at Bloomberg headquarters in New York today.

“The defaults we’ve seen in the market have been high- yield, non-rated area, smaller transactions, not the big headlines,” he said. BusinessWeek.com

Muni Fears Overblown: Money Managers
(SPECIAL: pub. March 2, 2011;)
Fabian said that $38 trillion of outflows in the municipal bond funds over the past three weeks is mostly due to credit fears and interest rates fears.

"People have generally taken that for granted over the past few years. We will continue to see investors leaking out of the market because it is really labor intensive to manage a municipal market portfolio," said Fabian TheStreet.com

Governors Tell Washington: Stop Talking About State Bankruptcies
(SPECIAL: pub. February 28, 2011;)
The municipal bond defaults that have occurred during the economic downturn have been “on the fringes” of the municipal market, Doe said. No general obligation bonds defaulted during the economic recession, he said.

Doe highlighted investor interest in the Illinois’ general obligation bond sale last week as evidence that bond markets “do have confidence in you.” Illinois, one of the lowest-rated states, sold $3.7 billion of taxable GO bonds in a deal that was oversubscribed. BondBuyer.com

Moody’s Zandi Says Risk of Widespread Muni Defaults Near ‘Zero’
(SPECIAL: pub. February 27, 2011;)
Thomas Doe, founder and chief executive officer of Concord, Massachusetts-based Municipal Market Advisors, said he has seen nothing to change his view that general-obligation debt at both the state and local level is secure.

“I don’t want to be Pollyanna about it,” Doe told the governors. “I have great confidence in you all, the markets do have confidence in you as well, and the informed investor, the institutional investor, understands that your debt is good.” BusinessWeek.com

Debt takes a huge chunk out of California's beleaguered budget
(SPECIAL: pub. February 26, 2011;)
Voters have approved borrowing in the last 10 years for such causes as stem-cell research ($3 billion), high-speed rail ($10 billion), and parks, water and the environment ($14 billion). They even took on $15 billion in debt to paper over a deficit that Gov. Arnold Schwarzenegger said would never reemerge — something economists have scolded the state for doing.

Because of its rock-bottom credit rating, California pays a premium for its loans. Taxpayers must fork over roughly $2 for every $1 borrowed — about 20% more than top-rated states, said Matt Fabian, an analyst at Municipal Market Advisors, a bond research firm. LATimes.com

Christie Plan Forcing Workers to Pay `Fair Share' Is Example for Governors
(SPECIAL: pub. February 25, 2011;)
In November, Republicans across the nation capitalized on discontent with the economy and joblessness holding above 9 percent to win a majority of governorships. Most of the Republicans followed Christie in saying they won’t raise taxes.

Governors have focused on employee costs as one-time revenue fixes that were previously used became unavailable, said Matt Fabian, managing director at Concord, Massachusetts-based Municipal Market Advisors.

Fabian said the “anti-tax, anti-government” sentiments many politicians are espousing may have ripple effects in the $2.9 trillion municipal-bond market.

“The protests and the pushback have shown that maybe there’s some limits to the extent to which spending cuts alone can balance budgets,” Fabian said in an interview. “If you say tax increases are impossible for any reason -- even to the point of disrupting your own government -- bondholders should have some concern about the long-term willingness to pay your debt.” Bloomberg.com

Fabian Says Worker Protests Raise Muni Selling Pressure: Video
(SPECIAL: pub. February 22, 2011;)
Matt Fabian, managing director of Municipal Market Advisors, discusses the municipal bond market and legislative efforts in some states to curtail the collective-bargaining rights of workers.

Unions and their allies are planning rallies, vigils and press conferences in at least 27 states this week against what they see as a national attack on government employees that is a seminal moment for organized labor. Fabian speaks with Betty Liu on Bloomberg Television's "In the Loop." Bloomberg.com

How States Can Fix Budget Crisis
(SPECIAL: pub. February 14, 2011;)
Many states face two significant fiscal challenges. The first is the long term problem of setting enough money aside to pay for employee pensions. The second, and more pressing problem, is closing what is estimated to be a multi-billion dollar budget gap in fiscal 2012.

"Near term budget gaps for states are immense," though not unmanageable, said Matt Fabian, a managing director at Municipal Market Advisors. "The states have the resources to cover their gaps. They could raise taxes, cut spending appropriately and borrow in the near term to cover their spending gap." CNBC.com

SEC subpoenas Harrisburg officials, investigates municipal bond issues
(SPECIAL: pub. February 1, 2011;)
Matt Fabian, managing director of Massachusetts-based consulting firm Municipal Market Advisors, said Harrisburg did a “notably poor job” of posting those updates last year, particularly with its near-default on a $3.3 million general-obligation bond payment last summer. It was ultimately paid with the help of a state bailout. PennLive.com

Bond Flight Means U.S. Investors Overlook Riskier Debt for Higher Yields
(SPECIAL: pub. January 5, 2011;)
Matt Fabian, managing director of Municipal Market Advisors, talks about the outlook for the U.S. municipal bond market in 2011. Tax-exempt muni bonds are heading for their worst quarterly performance in more than 16 years as yields soared amid a U.S. Treasury selloff and the looming expiration of Build America Bonds. Fabian speaks with Julie Hyman on Bloomberg Television's "Bottom Line." (Source: Bloomberg) Bloomberg.com

Fear of defaults putting pressure on municipal bonds
(SPECIAL: pub. December 29, 2010;)
Regardless of the care in selecting bonds, however, investors could be in for a shock if there is a default at a state level, because such an event "seems improbable," said Matt Fabian, managing director of Municipal Market Advisors. In a high-profile default, all municipal bonds would likely drop in value as investors got scared.

Meanwhile, municipal bond investors, apparently concerned about the chatter sparked by the Whitney interview, have been dumping shares. Fabian said they have pulled about $14 billion out of the funds this month after putting about $33 billion into them earlier in the year. If that continues, it also would drive down the value of bonds. Chicagotribune.com

6 Safe Ways of Investing in Tax-Free Municipal Bonds
(SPECIAL: pub. December 15, 2010;)
You will still have market risk, however. Rising long-term interest rates threaten every type of bond fund. That’s because when rates rise, bond prices decline. Municipal Market Advisors reports that November’s muni bond index performance was the worst since 1993 — losing almost 3 percent. Investors in bond funds will earn more income, thanks to the higher yielding munis the fund managers will be able to buy, but will lose money if they have to sell shares. If losses alarm you, switch to high-yielding certificates of deposit. Bnet.com

San Francisco Utility Delays Build Americas After Yields Leap: Muni Credit
(SPECIAL: pub. December 9, 2010;)
The increased supply in the market has exacerbated the selloff this week, said Matt Fabian, managing director of Municipal Market Advisors, an independent research firm based in Concord, Massachusetts.

“The fact that there are so many bonds in the market -- a strong secondary, strong primary -- those make it harder for the market to stabilize,” he said. “In general, munis might hold on a bit better except for the concern about BABs.” Bloomberg.com

5 Ways to Avoid Muni Market Mayhem
(SPECIAL: pub. December 7, 2010;)
By picking issuers whose finances and politics you can track thoroughly, like your local or state government, and investing in bonds backed by recession-proof, essential services, it’s possible to avoid potential blow-ups and ride out the current muni mess. It’s far from easy, says Matt Fabian, research director of Municipal Market Advisors, “but in some cases you can figure things out.” Smartmoney.com

BABs: The Last Pillar Standing
(SPECIAL: pub. November 29, 2010;)
MMA’s Fabian said the tax-free sector has in fact been substantially weaker for months.

In late summer, dealers did not want to touch long-term bonds, he said — the sector was so illiquid and thin that there were not enough trades to demonstrate how weak the market was.

The MMA scales tried to price this malaise in before the selling actually took place, which is why the MMA scales show a less drastic sell-off than the MMD scales.

Market participants say there is no reason to panic — just brace for higher long-term tax-free rates and a steeper yield curve.

“In general the assumption is for a steeper curve,” Fabian said. BondBuyer.com

Municipals: The mortgage parallel
(SPECIAL: pub. November 25, 2010;)
Bears are rubbing their paws. Mr Fabian has seen an uptick in inquiries from hedge funds looking to profit from a muni crash. They hope the widely held view that muni defaults are unlikely will be proved as big a misconception as the notion that house prices never fall. Economist.com

California boosts final muni bond sale as rising yields draw investors
(SPECIAL: pub. November 22, 2010;)
“We think this is an excellent time to be buying bonds,” said Matt Fabian, senior analyst at research firm Municipal Market Advisors in Westport, Conn. With yields up, plenty of investors apparently agreed. LATimes.com

How to Play the New Muni Market
(SPECIAL: pub. November 20, 2010;)
Most important, investors can no longer assume that any of the market's 20,000-plus issues will trade like the others. "It's more unpredictable than ever," says Matt Fabian, a managing director at Municipal Market Advisors, a research firm. WSJ.com

California Bond Woe Bodes Ill for States .
(SPECIAL: pub. November 18, 2010;)
The short-term notes mature next May and June and yield 1.25% and 1.5%, roughly what California paid a year ago, though higher than other states. "It's still an incredibly low rate, and it's an awful lot of bonds," said Matt Fabian, senior analyst at Municipal Market Advisors. WSJ.com

California kicks off $14 billion debt sale
(SPECIAL: pub. November 15, 2010;)
Yields on municipal bonds have been rising in recent weeks as state and local governments issue debt to boost liquidity as they struggle to trim deficits and balance budgets, said Matt Fabian, managing director at Municipal Market Advisors. CNN.com

Municipal Bond Market Shudders
(SPECIAL: pub. November 12, 2010;)
“This is what happens with our market now, with these fears of a systemic credit crisis,” said Matt Fabian, managing director at Municipal Market Advisors. “Any weakness is related to fears of default.” NYTimes.com

Wall Street Collects $4 Billion From Taxpayers as Swaps Backfire
(SPECIAL: pub. November 10, 2010;)
“Government operates with a very short-term mentality,” said Matt Fabian, a senior analyst at Municipal Market Advisors in Westport, Connecticut. “There isn’t much upside to look long term. They are looking for near-term savings on things.” Bloomberg.com

Florida CDDs in Dirt-Bond Quagmire
(SPECIAL: pub. November 4, 2010;)
Several CDDs warned the market last week that they anticipated having problems making their Nov. 1 payments.

In just two days after they were due, 23 districts reported problems with their payments, including 13 defaulting and eight drawing on reserves, said Matt Fabian, managing ­director and senior analyst for Municipal Market Advisors. BondBuyer.com

Atlanta’s $590 Million Bonds Lead Tax-Exempt Sales: Muni Credit
(SPECIAL: pub. November 2, 2010;)
States and municipalities are poised to sell as much as $10.3 billion in debt this week, about 15 percent less than last week, according to data compiled by Bloomberg. About $6.5 billion is scheduled to be sold as tax-exempts, an increase of 25 percent over last week, Bloomberg data show.

“Any kind of issuance in the tax-exempt market will be well-received” after a relative dearth, said Matt Fabian, an analyst with Concord, Massachusetts-based Municipal Market Advisors Inc. BusinessWeek.com

Ambac says may go bankrupt this year; shares sink
(SPECIAL: pub. November 1, 2010;)
"Ambac has been a corpse for some time," said Matt Fabian, managing director of Municipal Market Advisors, an independent research firm. "With the credit crisis ongoing and getting worse, it will make any kind of bankruptcy restructuring more difficult, and painful for creditors. The bankruptcy process appears to be going faster than investors expected." Reuters.com

Chicago finds creative use for Build America Bonds
(SPECIAL: pub. October 24, 2010;)
When told of Chicago's planned maneuver, bond expert Tom Doe, chief executive of Municipal Market Advisors, remarked, "That's pretty clever … (but) it seems contrary to the intent."

Clever and, some would say, a cause for concern. While a $10 million patch is only a small piece of the overall plan to erase the budget shortfall, it is yet another example of the city's reliance on one-time windfalls to get through another year, some observers say. ChicagoTribune.com

Illinois Pays More Than Mexico as Cash-Strapped States Sell Bonds Overseas
(SPECIAL: pub. October 5, 2010;)
International ownership of U.S. municipal bonds jumped 37 percent in the first half of the year from the end of 2009 to $83 billion, a Sept. 17 Federal Reserve report shows. Spurring the growth are Build America Bonds, created by President Barack Obama’s economic stimulus program to finance public-works projects. More than $140 billion of the debt has been sold in the 17-month-old market. About a quarter may have been bought overseas through June, said Matt Fabian, an analyst with Concord, Massachusetts-based Municipal Market Advisors Inc. Bloomberg.com

Jumping Into Munis Requires a Leap of Faith .
(SPECIAL: pub. October 4, 2010;)
Yet states—whose bonds account for 42% of the muni market, estimates Municipal Market Advisors—face a $350 billion shortfall for fiscal years 2010 and 2011, based on the Center on Budget and Policy Analysis. Pension deficits are possibly as high as $1 trillion.

Meanwhile, the collapse of muni-bond insurance means "we really have a virgin market," says Matt Fabian of MMA. In the past, more than half of new muni bonds were insured. Now, barely a tenth of them are covered. WSJ.com

Harrisburg asks to enter state program for distressed municipalities
(SPECIAL: pub. October 2, 2010;)
Matt Fabian, a managing director at Municipal Market Advisors, a research firm in Westport, Conn., said there was "far less stigma associated" with Act 47 protection, especially as other Pennsylvania cities had entered the program and managed to get back on financial track. Philly.com

Whitney Says States May Need Federal Bailout in Next 12 Months
(SPECIAL: pub. September 30, 2010;)
“While states’ financial conditions are undeniably stressed now and will reasonably remain stressed for the next decade or more, GO bondholders are generally well-cushioned versus other interested parties -- taxpayers, service recipients, employees, vendors -- who will feel pain more directly,” said Municipal Market Advisors in a report today. The Concord, Massachusetts-based firm said it hasn’t seen Whitney’s report. Bloomberg.com

Overseas Buyers Increase U.S. Municipal Bond Holdings 15% to $83 Billion
(SPECIAL: pub. September 18, 2010;)
Buyers outside the U.S. are drawn by the higher yields on the securities compared with other types of government debt, said Matt Fabian, managing director of Concord, Massachusetts- based Municipal Market Advisors.

“There isn’t much to compare with the amount of yield as an investor you can get with Build America Bonds,” Fabian said. “They’ve been a good investment and they have very high coupons, very high yields. As an investor, what’s not to like?” Bloomberg.com

Municipal Bond Insurance Not Coming Back, Cure Says
(SPECIAL: pub. September 15, 2010;)
Warren Buffett, whose Berkshire Hathaway Inc. tried to gain business after the demise of MBIA and Ambac, has started to back away from the market, said Matt Fabian, managing director of Concord, Massachusetts-based Municipal Market Advisors.

“So long as Warren Buffett says it’s a bad idea, most private equity managers won’t allocate to that trade,” said Fabian. Bloomberg.com

Harrisburg, Pennsylvania, Bond Default Averted With State Aid
(SPECIAL: pub. September 13, 2010;)
If Harrisburg misses the Sept. 15 payment, it would be the second-largest borrower, behind Jefferson County, Alabama, to default on bond payments this year, according to Matt Fabian, managing director of Municipal Market Advisors, in Westport, Connecticut. Bloomberg.com

Harrisburg Default Adds to Muni Woes
(SPECIAL: pub. September 8, 2010;)
"Some pundits are already pointing to Harrisburg’s action as the first domino in the widely forecasted collapse of municipal issuers," according to a recent report by Matt Fabian, director of research at Municipal Market Advisors.

However, Fabian and other muni bond experts don't see the dominos toppling. Alan Schankel, managing director for fixed income at Janney Montgomery Scott in Philadelphia, says Harrisburg's decision to default on the general obligation bonds is more a problem for the city than muni debt nationwide. Smartmoney.com

Harrisburg blundering closer to bankruptcy
(SPECIAL: pub. September 5, 2010;)
"The fractious political system in Harrisburg is certainly not helping to resolve the situation," said Fabian, of Municipal Market Advisors.

The bad blood has even sparked a spat between the mayor and other officials over how to pay for the soul band scheduled to perform this weekend at the city's annual Kipona festival. The band: War. Fabian said city officials needed to mend their differences and focus on a solution - because now, he said, Harrisburg has not one but two bond insurers after it to make good on its payments.

And bond insurers, Fabian warned, do not suffer municipal fools gladly.

"These are not common investors," he said Friday in an interview. "These are very tough guys. You don't want one of them on your case, let alone two." Philly.com

Harrisburg Expects to Miss a Bond Payment
(SPECIAL: pub. September 2, 2010;)
The city’s prior defaults could be blamed on how the incinerator has not functioned,” said Matt Fabian, managing director of Municipal Market Advisors, an independent consulting firm. “This default is very different, because it shows the city cannot operate under normal circumstances. It’s a default based on the structure and function of government itself.”

Mr. Fabian said he thought Harrisburg had stumbled badly by defaulting on a relatively small amount of debt.

“Their ability to restructure the incinerator debt is now compromised, because what could you restructure the incinerator bonds with, if not general obligation bonds?” he said. “Now their general obligation is not a credible pledge.” NYTimes.com

Bankruptcy on horizon for Pennsylvania capital
(SPECIAL: pub. September 2, 2010;)
"This shows that the city is failing to function," said Matt Fabian, managing director of Municipal Market Advisors, a Massachusetts-based research firm. "Now it seems that a municipal bankruptcy filing is almost a foregone conclusion."

The number of fiscally troubled municipalities, such as Harrisburg, is small but increasing. But Fabian said the pain and stigma of bankruptcy are simply too great for most local governments. WashingtonPost.com

Jail Bonds Can't Bar Defaults
(SPECIAL: pub. September 1, 2010;)
Matt Fabian, director of research at Municipal Market Advisors, cites similar bond woes in Central Falls, R.I.; Hardin, Mont.; and Baker County, Fla., where about $105 million in total debt has run into trouble because the prison projects haven't worked out as expected.

"The incarceration rates drives speculation," he says. "There's an idea that you can profit from this prison trend." SmartMoney.com

Tips for Investing in Bonds
(SPECIAL: pub. August 25, 2010;)
Municipal Market Advisors CEO Thomas Doe on the risks involved in the municipal bond market. FoxBusiness.com

Museum Exhibits Muni Debt Woes
(SPECIAL: pub. August 11, 2010;)
Thomas Doe, chief executive of Municipal Market Advisors, says bond insurance has disappeared since the crash.
If there's a benefit, he says it's that investors and advisors pay much closer attention to the underlying risks of a municipal debt, now that there's effectively no safety net. SmartMoney.com

Money managers play defense in their municipal portfolios
(SPECIAL: pub. August 8, 2010;)
But experts note that the potential for muni bond defaults remains limited to smaller issuers in certain sectors, such as real estate. So far this year, there have been $23 billion in muni defaults in a $2.8 trillion market, according to Municipal Market Advisors. InvestmentNews.com

For California muni bond market, no state budget is no problem
(SPECIAL: pub. July 29, 2010;)
New issuance of tax-free bonds nationwide fell 22% in the first half of the year from the same period of 2009, according to Matt Fabian, senior analyst at research firm Municipal Market Advisors. Many states and municipalities have curtailed new debt sales as they grapple with budget woes, Fabian notes. LATimes.com

US States Debt Unlike Greece
(SPECIAL: pub. July 14, 2010;)
The amount of debt that some US states have is relatively small as a percentage of their budget, and the comparison to Greece that many like to make is unfounded, Thomas Doe, founder and CEO of Municipal Market Advisors told CNBC. CNBC.com

Illinois Sells $900 Mln In Bonds; Spread Lower Than Expected
(SPECIAL: pub. July 14, 2010;)
Illinois didn't appear to have trouble attracting investors to a $900 million taxable municipal bond deal Wednesday, despite weak tax revenue, persistent fiscal woes and a yawning pension hole.

Investors bid up prices on the longest maturity part of the taxable Build America Bond deal, due in 2035, pushing down the risk premium to 325 basis points, or 3.25 percentage points, over the benchmark 30-year Treasury bond. Before the sale, the premium--the bonus investors demand to buy the bonds instead of extremely safe Treasurys--was forecast at 340 basis points, give or take 10 basis points. Citigroup was ... WSJ.com

Muni Yields at Record 9-Year Low May Drop Further, Fabian Says
(SPECIAL: pub. July 12, 2010;)
Yields on 10-year top-rated municipal bonds, which move inversely to price, may decline further after falling to the lowest level since 2001, according to Matt Fabian, managing director of Municipal Market Advisors.

Tax-exempt general obligations remained at an average yield of 2.94 percent for the second straight day on July 9, the lowest in at least nine-and-a-half years, as investors boosted their holdings with reinvested June and July coupon payments. States and municipalities are scheduled to sell $6.3 billion in debt this week, 17 percent below the weekly average this year, according to data compiled by Bloomberg.

“If people become comfortable below 3 percent, munis will have more of a rally potential,” Fabian said in an interview. “This could cause more trading accounts to want to come in and trade munis because there’s an identified upside. This could be the sign of a turning point in the market.” BondsOnline.com

Advisers' Use of Build America Bonds Grows
(SPECIAL: pub. July 9, 2010;)
Financial advisers are using more Build America Bonds in clients' portfolios, and their appetite is only expected to grow if the taxable-bond program is extended—even if federal subsidies are trimmed.

"Over the next couple of years, it's going to continually become a bigger playing field for the adviser," he says. "They're just getting started with these bonds."

Build America Bonds are municipal debt instruments authorized under the U.S. government's 2009 stimulus program. Unlike many municipal bonds, the income they generate is subject to tax, but the federal government subsidizes 35% of the interest cost of the bonds. As of July 6, almost $118 billion in bonds had been issued by states, cities and other entities, according to consulting firm Municipal Market Advisors. WSJ.com

Hospitals' Wall Street Wounds
(SPECIAL: pub. July 7, 2010;)
Hospitals nationwide are tangling with Wall Street to get out of disastrous wagers that have complicated their financial problems.

Some hospitals are paying millions of dollars in penalties to get out of derivatives contracts, after betting incorrectly that interest rates would rise. Other hospitals are paying higher interest rates. At many, these ill-fated financial bets have contributed to layoffs and scuttled projects.

More than 500 nonprofit hospitals—at least one in six—bought interest-rate "swaps" in a bid to lower their borrowing costs, estimates Municipal Market Advisors, a Concord, Mass., consulting firm. The swaps allowed hospitals ... WSJ.com

Fabian Sees Tax Overhaul, Not Cuts for State Budget Woes: Video
(SPECIAL: pub. July 1, 2010;)
Matt Fabian, managing director of Municipal Market Advisors, discusses the outlook for tax changes by states and local governments to reduce debt. Fabian talks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg) (Bloomberg) WashingtonPost.com

Munis Underperform Treasuries as Default Speculation Mounts
(SPECIAL: pub. June 30, 2010;)
Municipal bonds underperformed U.S. Treasuries in the first half as default speculation drove state and local government yields to the highest level relative to government bonds in 13 months.

Ten-year municipal bond yields rose to 100 percent of Treasuries for the first time since May 2009, from 80 percent six months ago, according to Municipal Market Advisors data. Investors bought Treasuries, pushing two-year yields to a record low this week, on signs of slowing global economic growth and amid protests in Europe over austerity measures. BondsOnline.com

City Symbolizes Budget Crisis Facing Many Across US
(SPECIAL: pub. June 29, 2010;)
State capital Harrisburg, population 50,000, is only the ninth-biggest city in Pennsylvania. Yet it has become a center of debate over the nation’s brewing municipal fiscal crisis.

And Wall Street bond traders are watching what happens in Harrisburg very closely, noting that the city is one of the more troubled bond issuers in a municipal market that figures $2.8 trillion in size, according to Municipal Market Advisors. CNBC.com

Muni Bonds: Don't Hit the Panic Button Yet
(SPECIAL: pub. June 26, 2010;)
The drumbeat of anxiety over municipal bonds is getting louder, with headlines screaming about state budget deficits and talking heads—Warren Buffett among them—expressing alarm over the ability of issuers to make good on their debts.

There are many ways investors can sidepstep muni minefields. They can forego individual bonds and instead buy a municipal-bond fund, though these carry management fees and carry other risks. "The downside for funds is that most are managed to outperform each other from a total-return perspective," says Matt Fabian, managing director of consulting firm Municipal Market Advisors. If the bond market suffers a slump, fund investors may have to sell at a loss, while individual bondholders can simply wait to be paid out as the bonds mature, he says. WSJ.com

Midwest Munis Bet on Retirees -- and Lost
(SPECIAL: pub. June 16, 2010;)
When Erickson Retirement Communities filed for bankruptcy in October 2009, the senior housing and health-care operator joined a long list of businesses felled by the nationwide housing slump and subsequent recession. Erickson, a Baltimore-based operator of about 19 continuing care retirement communities with about 23,000 residents, was a casualty of the housing market as surely as any homeowner who lost a house to foreclosure.

Erickson will be paying bondholders about $3.5 million of the $95 million total debt associated with its Chicago-area Sedgebrook assisted living complex, according to Matt Fabian, managing director of Municipal Market Advisors, a research firm that tracks many of the estimated 60,000 municipal bonds on the market. His data show that there are 23 retirement facilities-related bond issues representing about $673 million worth of debt that have missed payments and defaulted. Another $1.4 billion of retirement bonds are either making payments from reserves or are in technical default, making the sector one of the shakiest in the still relatively sedate muni marketplace.

One of the Sedgebrook bonds defaulted in December, and now trades at 14 cents on the dollar, according to MMA data. The bonds are mostly owned by big mutual fund companies that put the unrated series, which paid 6%, into high-yield municipal bond funds. SmartMoney.com

In Florida, Housing Bust Looms Over Bonds
(SPECIAL: pub. June 9, 2010;)
The vacant lots and half-finished subdivisions that dot the landscape around Tampa and other Florida cities tell a larger story than a housing bubble that's popped.

The empty spaces and sparsely built streets are evidence of a messy financial residue that some experts say could represent the next wave of trouble for investors – the weakened state of municipal bonds. Munis, a $3 trillion corner of the market once thought to be almost risk-free, are seeing more defaults, and while the numbers for busted bonds remain small, they're growing, and so are investor fears.

"Everyone is concerned," says Matt Fabian, managing director of Municipal Market Advisors, a research firm that keeps track of most of the 60,000 muni bonds on the market, about one-third of which are rated by agencies such as Moody's, Fitch Ratings and Standard & Poor's. "There are lots of questions over whether a collapse will start." SmartMoney.com

Bonds: A refuge from May's market mayhem
(SPECIAL: pub. May 29, 2010;)
As many Americans shunned the stock market in favor of buying bonds in record amounts over the last year, financial writers including yours truly felt compelled to warn that bonds, too, carry risks.

But after the nightmare that stock investors just suffered through this month, most newbie bond owners probably figure they made exactly the right choice with their money.

Matt Fabian, senior analyst at research firm Municipal Market Advisors in Westport, Conn., says the muni market has benefited from a continuing influx of "people who are buying to hold, not trading accounts." LATimes.com

Volcker Rule, or Not
(SPECIAL: pub. May 25, 2010;)
WASHINGTON — As the two chambers of Congress begin to hammer out a single financial regulatory reform bill over the next several weeks, industry groups have mixed views about a provision in the Senate bill that would prohibit banks from engaging in proprietary trading but exclude municipal, Treasury and federal agency securities from the ban.

“If the Senate exempts munis, then it’s really not a matter of concern for the market,” said Matt Fabian, managing director at Municipal Market Advisors.

Dealers’ ability to at least temporarily buy munis from their prop desks has been important for managing the primary market, and a limitation on that ability would probably have led to slightly higher yields, he said.

At the same time, Fabian said extending the ban to municipals would avert a return to the risk that the market was carrying when proprietary TOB programs were using a lot of leverage to hold munis for incremental return. BondBuyer.com

Municipal Bonds: The Next Financial Land Mine?
(SPECIAL: pub. May 24, 2010;)
As Wall Street nervously watches the sovereign debt crisis unfold in Greece, another potential landmine is looming closer to home, one that could bring U.S. cities and towns to their knees, force the federal government to cough up another bailout package, and potentially send the unemployment rate much higher. The danger this time? Municipal debt.

Bankruptcy is a particularly unnerving prospect for bondholders. Municipal securities are a $2.8 trillion market, according to Municipal Market Advisors. An avalanche of investors sought refuge in the sector in recent years, lured by the stable, tax-free nature of muni bonds. More than $69 billion flowed into long-term municipal bond mutual funds in 2009, up from only $7.8 billion in 2008 and $10.9 billion in 2007, according to the Investment Company Institute. Another $15.2 billion has been added so far in 2010. Time.com

Washington to Sell $1.1 Billion at Lowest Build America Yields
(SPECIAL: pub. May 24, 2010;)
Washington State plans to sell $1.1 billion of Build America debt in the week’s biggest municipal bond sale after yields on the taxable securities reached the lowest level since their inception last year.

The average yield on the Wells Fargo Build America Bond index touched 5.63 percent May 21, near a record low of 5.62 percent on May 6. The index began tracking yields in August. Investors are buying U.S. government debt for its relative safety as speculation grows that European leaders may fail to contain the region’s fiscal crisis. Build Americas have helped boost the holdings of municipal notes by investors abroad.

“It’s been volatile everywhere except munis -- we’ve been the flight to safety,” said Matt Fabian, managing director of Municipal Market Advisors. “For munis to not sell off despite all the global concerns about risk and the specific constant drumbeat about pensions and budget issues” signals investor confidence in the market. BusinessWeek.com

Municipal Bond Risk Overstated - Interview with Tom Doe of Municipal Market Advisors
(SPECIAL: pub. May 10, 2010;)
In a recent interview, Tom Doe, the CEO of MMA provided his thoughts on the municipal bond market. This includes his belief that Jim Chanos and others are overblowing municipal bond default concerns. He also discusses the BAB market, the outlook for munis in May, and how Moody's and Fitch's rating recalibrations will impact the muni market BestCashCow.com

Buffett Says GM Rescue May Mean U.S. Can’t Say No to States
(SPECIAL: pub. May 5, 2010;)
Warren Buffett, chairman of Berkshire Hathaway Inc., said the U.S. would probably feel compelled to rescue a state facing default after the government committed $700 billion to bail out financial firms and automakers.

States have severe budget issues, but they are not close to being unable to pay their debt,” said Matt Fabian, managing director of Municipal Market Advisors, a Concord, Massachusetts- based researcher. “From an immediate bondholder perspective, there is really only a minimal risk of default,” he said. “Many of the more aggressive measures taken by states have been done specifically to protect bondholders.” BusinessWeek.com

Budget Cuts May Avert Any ‘Blip’ in Muni Bankruptcies (Update2)
(SPECIAL: pub. April 29, 2010;)
State and local governments are likely to avoid bankruptcy through spending cuts, even as their financial stress mounts, according to panelists at a Securities Industry and Financial Markets Association seminar.

About 187 municipal issues have missed payments to bondholders since last year, said Matt Fabian, managing director of Municipal Market Advisors, a Concord, Massachusetts-based researcher. A total of 495 issuers have filed notice of some type of impairment, such as payment default, reserve draws or other developments, he said

The nonperforming debts are concentrated in certain parts of the municipal market, Fabian said. Among these he listed so- called dirt bonds in Florida that were backed by real estate projects that collapsed in the recession, and hospital bonds. BusinessWeek.com

Illinois Markets $250 Million Tax-Exempts After Fitch Downgrade
(SPECIAL: pub. April 1, 2010;)
“Even though Illinois has its issues, there are plenty of buyers,” said Matt Fabian, a senior analyst with Municipal Market Advisors in Westport, Connecticut. The yield won’t be affected because “there’s such a shortage of tax-exempt, long- maturity paper that I think they’ll do fine.” BusinessWeek.com

No shortage of credit here
(SPECIAL: pub. April, 2010;)
Some industry sources predict that Build America Bonds could reach $100 billion to $150 billion this year—or close to 30 percent of all municipal bonds. The BAB program is also keeping a lid on rates for traditional tax-exempt municipal bonds because it is providing an attractively priced alternative for both buyers and sellers of municipal bonds. Matt Fabian, managing director of Municipal Market Advisers (MMA), a bond market research firm, said, “I think it’s pretty clear that [BABs] have been replacing, on almost a dollar-for-dollar basis, funds that would have been sold tax exempt. So they are contributing to a scarcity situation” for tax-exempt bonds. If that’s the case, the BAB program hasn’t necessarily expanded the municipal bond market as funds flow from one muni bond type to another. MinneapolisFed.org

US Investors Not Keen On Greece; See California As Safer Bet
(SPECIAL: pub. March 31, 2010;)
"California is a deficit problem, Greece is a debt problem," said Matt Fabian, senior municipal analyst at Municipal Market Advisors. "Greece needs current market access in order not to default on their debt. In California, all the debt is fully funded and debt service is well below 10% of the state's expenses." Nasdaq.com

State Debt Woes Grow Too Big to Camouflage
(SPECIAL: pub. March 29, 2010;)
Even though about $5 billion of municipal bonds are in default today, the vast majority were issued by small local authorities in boom-and-bust locations like Florida, said Matt Fabian, managing director of Municipal Market Advisors, an independent consulting firm. The issuers raised money to pay for projects like sewer connections and new roads in subdivisions that collapsed in the subprime mortgage disaster. NYTimes.com

Ambac Regulator Takes Over to Avoid Asset ‘Scramble’
(SPECIAL: pub. March 26, 2010;)
Dilweg’s decision to halt payments on mortgage securities isn’t necessarily a positive for municipal-bond holders, according to Matt Fabian, a senior analyst with Municipal Market Advisors in Westport, Connecticut. “It gives an investor pause -- is my bond the next one for which the company doesn’t pay on its policy?” Fabian said. BusinessWeek.com

Depfa Demands Money
(SPECIAL: pub. March 25, 2010;)
“It’s a unique transaction but as an investor you have to be very careful in buying the debt of any issuer that walks away from a moral obligation pledge,” said Matt Fabian, a managing director at Municipal Market Advisors. “The moral obligation is a time honored tradition.” BondBuyer.com

Interest-Rate Deals Sting Cities, States
(SPECIAL: pub. March 22, 2010;)
The supply of municipal derivatives swelled to more than $500 billion before falling in the past two years, estimates Matt Fabian, managing director at research firm Municipal Market Advisors. Moody's Investors Service says the surge was fueled by Wall Street marketing efforts, demand from state and local governments and "relatively permissive" statutes on the use of swaps in Pennsylvania and Tennessee, both of which are taking steps to tighten rules. WSJ.com

California muni bond market could see supply and demand shift under Obama proposals
(SPECIAL: pub. February 2, 2010;)
Obama proposes to make the BAB program permanent and to allow more muni issuers to make use of the financing. But he also wants to reduce the federal interest subsidy on BABs to 28% from 35%, beginning with bonds sold in 2011. Depending on market interest rates for tax-free bonds, that could tilt some muni issuers away from BABs and back toward tax-free financing for their projects. Matt Fabian, senior analyst at Municipal Market Advisors, said he believed that the subsidy cut was minor and that for many muni issuers, “there will still be a compelling argument for using BABs.” LATimes.com

N.J. budget disputes, surprise announcements may lessen investor confidence
(SPECIAL: pub. January 28, 2010;)
States usually try to avoid releasing major financial news during or close to a bond sale, said Matt Fabian, managing director of Municipal Market Advisors in Concord, Mass. That way, investors know they get what they paid for.

"You could be annoyed at if you’d just bought $100 million of those bonds, because it implies that maybe you paid the wrong price," he said. NJ.com

Cantor Fitzgerald to Enter Municipal Bond Market
(SPECIAL: pub. January 26, 2010;)
Matt Fabian, a senior analyst and managing director at Municipal Market Advisors, a Concord, Massachusetts-based research firm, said opportunities are opening up in investment banking following the demise of bond insurers such as MBIA Inc. and Ambac Financial Group Inc.

Without bond insurance, which allowed municipalities to get AAA ratings on their bonds and cheaper borrowing, municipal debt now takes more time to sell and traders can take advantage of greater volatility, Fabian said.

In addition, with the federal government facing a deficit of $1.35 trillion and state governments facing deficits of $350 billion during the next two years, demand for tax-exempt bonds will rise, Fabian said.

“More investors want access to tax-exempts with the tax hikes coming,” he said. BusinessWeek.com

MUNI WATCH: Burned Once, Issuers Shun New Variable-Rate Debt
(SPECIAL: pub. January 20, 2010;)
Matt Fabian of Municipal Market Advisors estimates municipalities have paid as much as $28 billion to exit interest-rate swaps on variable-rate debt over the past two years, and that's not including advisory fees, legal fees and commissions on new debt issuance. WSJ.com

Record Year for Muni Bond Sales Seen as N.Y. MTA Preps Offering
(SPECIAL: pub. January 6, 2010;)
The “generous” 35 percent Treasury rebate on Build America interest costs may entice state and local borrowers to sell as much as $150 billion of the bonds in 2010, more than twice as much as last year, Municipal Market Advisors forecast this week. The MTA, operator of subways, buses, rail lines and river crossings, plans to sell $350 million of so-called BABs as soon as today.

“Because of the generous BAB subsidy, we are forecasting record municipal borrowing” this year, Matt Fabian, senior analyst at the Concord, Massachusetts-based research firm, said in a Jan. 4 report. “Many of the uncertainties in the municipal market for 2010 involve questions of how long the BAB program is extended and at what terms. Re-authorization for at least another two years is a near-certainty.” BusinessWeek.com

States pitch bonds to foreign buyers
(SPECIAL: pub. December 24, 2009;)
Matt Fabian is with Municipal Market Advisors. He estimates foreign investors have bought about 40 percent of Build America Bonds. He says they pay slightly higher interest than comparable corporate bonds with a little extra security.

MATT FABIAN: So triple-A Utah. Very low risk of payment default. It's hard to find something quite that safe in the corporate market. Especially now, with conditions still so uncertain. PublicRadio.org

N.J. Leads Municipal Bond Downgrades as Aid Shrinks
(SPECIAL: pub. December 22, 2009;)
“This has been issue number one for local governments in the past 12 months,” said Matt Fabian, 39, managing director and senior analyst at Concord, Massachusetts-based research firm Municipal Market Advisors. “They’re feeling the pressure.” Bloomberg.com

Muni Bond Madness
(SPECIAL: pub. November 30, 2009;)
Build America Bonds have accounted for a quarter of new muni issues this year. In 2010 their share is likely to hit 40% of the $400 billion new issue market, predicts Thomas Doe, founder of Municipal Market Advisors. Forbes.com

Puerto Rico Bonds Beat U.S. States as Fortuno Cuts
(SPECIAL: pub. November 13, 2009;)
Fortuno’s so-called fiscal stabilization plan will have to show results soon to sustain the gains investors have recorded, said Matt Fabian, managing director at Municipal Market Advisors, a researcher in Concord, Massachusetts.

“You have a major implementation risk involving how well the plan will do,” Fabian said in an interview. “It’s not a credit that’s out of the woods yet.” Bloomberg.com

California May Pay More Than in March at $1.5 Billion Bond Sale
(SPECIAL: pub. November 10, 2009;)
Borrowing costs for state and local governments that pay so-called spreads above benchmark tax-exempt yields reached a two-month high as California state-level debt issuers borrowed or refinanced more than $10.5 billion since Oct. 5.

"With California flooding the new issue market with higher-yielding paper, spread paper is cheapening to stay competitive,” Matt Fabian, managing director and senior analyst at Concord, Massachusetts-based independent research firm Municipal Market Advisors, said in a report yesterday. Bloomberg.com

Bond Debacle Sinks Jefferson County
(SPECIAL: pub. November 8, 2009;)
"At some point they will be able to get market access back," says Matt Fabian, a managing director at Municipal Market Advisors in Concord, Mass. "But it's just going to be much more expensive for them. Jefferson County is the scariest situation in the market today." ?

Fabian worries that Jefferson County's method of solving its problem could set a precedent for other bond issuers. While investors are prepared to risk default on riskier bonds, such as land speculation district bonds in Florida that default frequently, Jefferson County's sewer bonds are considered to be "safe sector credits" that yield a steady and supposedly worry-free return. Should Jefferson County declare bankruptcy or make an arrangement where bondholders get cents on the dollar, analysts fret that other municipalities facing similar problems—though likely on a lesser scale—would follow suit and either declare bankruptcy or make arrangements with creditors that would yield skimpy payments. "How Jefferson County got into its situation is unique," says Fabian. "But how it gets out could set an example for other issuers to follow, and that's the fear for investors." BusinessWeek.com

California Boosts Build America Bond Sale 21% to $908 Million
(SPECIAL: pub. November 3, 2009;)
“It’s a good sign of investor demand generally for the state,” said Matt Fabian, senior analyst and managing director for Concord, Massachusetts-based independent research firm Municipal Market Advisors. “Despite all of its credit and supply issues, there’s at least one buyer” with a “sizeable” appetite for its bonds, he said. Bloomberg.com

Harvard’s Bet on Interest Rate Rise Cost $500 Million to Exit
(SPECIAL: pub. October 17, 2009;)
Harvard paid “a large termination fee, but within the range that we’ve heard about over the last year,” Matt Fabian, the senior analyst and managing director of Municipal Market Advisors in Westport, Connecticut, said in an e-mail. “There is a reason why, regardless of the issuer’s sophistication, there should be limits to their exposure to derivatives and variable rate bonds.” Bloomberg.com

Washington to Refinance Less as Muni Yields Jump to 7-Week High
(SPECIAL: pub. October 14, 2009;)
“The market has been slowing down, price gains have slowed down and trading volumes are getting thinner and thinner,” said Matt Fabian, the senior analyst and managing director of Municipal Market Advisors in Westport, Connecticut. Bloomberg.com

California municipal bond sale falls short of fundraising goal
(SPECIAL: pub. October 9, 2009;)
After $4.5 billion in general obligation bonds fails to attract enough orders to raise the full amount, the state cut the total size of the deal by 8% to $4.14 billion, Treasurer Bill Lockyer says.

Suddenly, "people are punting bonds," said Matt Fabian, senior analyst Municipal Market Advisors in Westport, Conn. With investors insisting on higher yields on bonds in general before they'd buy, California was bound to be squeezed, analysts said. That also gave some investors an excuse to focus on the state's still-troubled fiscal situation. LA Times

Foreign Buyers Added Most to Munis as Build America Deals Began
(SPECIAL: pub. September 17, 2009;)
Foreign buyers boosted holdings of U.S. municipal securities by a larger percentage than any other investor group in the second quarter as issuers started selling taxable Build America Bonds, offering yields higher than tax- exempt debt.

Holdings of long-term municipal securities in “the rest of the world” rose $5.6 billion, or 14 percent, to $45.6 billion during the April-through-June period, the highest in a year, according to Federal Reserve data released today.

“That has to be BABs,” Matt Fabian, managing director of independent research firm Municipal Market Advisors said in an interview from Westport, Connecticut. Bloomberg.com

State revenue anticipation notes to yield less
(SPECIAL: pub. September 17, 2009;)
Early next week, California will sell $8.8 billion in tax-exempt revenue anticipation notes, but investors hoping for a repeat of last year's juicy yields - 3.75 and 4.25 percent - are likely to be disappointed.

On one hand, with the average tax-free money market fund yielding less than 0.1 percent, funds "are absolutely starved" for yield, says Matt Fabian, managing director with Municipal Market Advisors, a research firm. San Francisco Chronicle

Municipal Credit Spreads Narrow to Tightest Since October 2008
(SPECIAL: pub. September 4, 2009;)
Yields on general obligation bonds due in 20 years tracked by the weekly Bond Buyer 20 index dropped 16 basis points this week to 4.37 percent yesterday, the lowest since February 2008. Municipal Market Advisors’ daily gauges of AAA debt were little changed today.

Fixed-rate municipal borrowing fell to about $2.8 billion before the Labor Day holiday weekend, the lowest since the week that ended July 4, Independence Day, Bloomberg data show. Bloomberg

Bonds: Is Now the Time to Buy Long-Term Munis?
(SPECIAL: pub. August 26, 2009;)
Yields on tax-exempt bonds maturing in less than 10 years fell to a six-year low during the week of Aug. 16. With 30-year municipal bonds offering yields near 5%—an astonishing four percentage points higher than two-year muni bonds—yield-hungry municipal bond investors are shifting money into riskier, longer-term municipal bonds, according to Municipal Market Advisors, which publishes a newsletter for municipal bond investors. Business Week

A 'win-win' deal for Stamford
(SPECIAL: pub. August 25, 2009;)
With the sea change in the municipal market, Fabian (from Municipal Market Advisors) said the city is lucky that the project has found a way to move forward without issuing bonds.

"The municipal market may never return where we are doing projects like this," he said. Moreover, many TIF districts that have issued bonds have gone into default. "The investors are not there, but the ones who are there are much more conscious because of the defaults across the country," he said. Greenwich Time

Local difficulties
(SPECIAL: pub. August 24, 2009;)
Matt Fabian, managing director of Municipal Market Advisors, a Massachusetts research firm, puts it bluntly: "The municipal bond industry is the backwater of the financial markets because it was designed that way."

Although with $2,700bn (£1,640bn, €1,880bn) of bonds outstanding it had become a decidedly big backwater, for years the market where US state and local governments raise money for everything from roads and sewers to schools and sports stadiums operated with hardly a hitch. Default rates were low, many prices barely moved and bonds of some of the 50,000 issuers did not trade at all. Financial Times

Hunger for yield could help California in looming debt sale
(SPECIAL: pub. August 11, 2009;)
The rally in California munis has been so strong that some analysts say yields now are too low on shorter-term bonds to warrant locking up money. "The value is out of California debt," said Thomas Doe, head of market research firm Municipal Market Advisors in Concord, Mass.

But yield-hungry investors should soon have another option from the state: a debt offering that will bridge the gap between near-term spending needs and future tax revenue. Los Angeles Times

Muni bonds lose ratings after Ambac junked
(SPECIAL: pub. July 31, 2009;)
Thousands of municipal bonds have lost their ratings and others have been downgraded after Standard & Poor’s this week stripped bond insurer Ambac Assurance of its investment-grade ratings.

“It is not a catalyst for a major market shift, but it will reduce the valuation and the liquidity which will spook retail investors,” said Matt Fabian, managing director at Municipal Market Advisors. Wealthy US individuals are big holders of muni bonds because the interest income is exempt from some taxes. Financial Times

Bond analyst skeptical of California's new budget
(SPECIAL: pub. July 28, 2009;)
A bond analyst was skeptical Monday about California's revised budget, saying it was filled with accounting tricks that would do little to improve the state's poor credit rating.

In addition, lenders may not be satisfied with California's latest spending plan, which combines $15 billion in cuts to education, prisons, parks and other aspects of state government with accounting maneuvers and borrowing to close a $26 billion deficit.

The state already has the lowest credit rating in the nation, except for the commonwealth of Puerto Rico, said Matt Fabian, a bond analyst at Municipal Market Advisors, based in Concord, Mass. The Associated Press

Taxpayers Inferior to Shareholders With Obama Bonds
(SPECIAL: pub. July 22, 2009;)
State and local governments, forced to close budget gaps by firing workers and shutting schools, may pay at least $4.2 billion more in interest than companies with similar credit ratings on Barack Obama’s Build America Bonds.

Congress’s Joint Tax Committee estimated in February that the Treasury would spend $9.8 billion through 2019 subsidizing the bonds. Matt Fabian, a managing director at Municipal Market Advisors in Westport, Connecticut, said in a June 22 report that the program’s price tag may reach $27.3 billion by the time all such securities mature in 2044. Bloombeg.com

Build America Bonds Boom, Adding to Tab
(SPECIAL: pub. July 18, 2009;)
Washington's effort to jump-start the once-stagnant market for municipal debt has produced a program that continues to swallow new deals.

Led by a $352 million sale from the North Carolina Turnpike Authority, the Build America Bonds program generated $1.72 billion of new issuance this past week, comprising nearly a quarter of municipal sales. That is the highest total in three months, and four times the prior week's pace. The initiative, part of the $787 billion federal stimulus package signed in February, gives state and local issuers a 35% rebate on interest payments for new debt. Wall Street Journal

Municipal bonds: Safety depends on the municipality
(SPECIAL: pub. July 14, 2009;)
If you're concerned with safety, you want to stick with what are called general obligation bonds. These are bonds that draw on the borrowers' general taxing power. There have been almost no defaults of general obligation bonds in the past 30 years, says Matt Fabian of Municipal Market Advisors. USA Today

Fiscal crisis takes toll on California's bond ratings
(SPECIAL: pub. July 12, 2009;)

“California's issue is really a political crisis,” said Matt Fabian, managing director of Municipal Market Advisors, a bond analysis and research firm in Massachusetts. “The state has the financial ability to patch up its own budget. But it can't overcome the political problems: the polarization of the Legislature, the acrimonious political atmosphere and the requirement of a two-thirds majority to pass taxes or pass the budget.” San Diego Union Tribune

California's Broke. Should You Invest in It?
(SPECIAL: pub. July 5, 2009;)
Time for some California dreaming: Will the state plug its budget gap, and are its bonds worth a gamble?

Yes, according to Matt Fabian, managing director of Municipal Market Advisors in Concord, Mass. As California hurtled toward its budget deadlines last month, interest rates on its tax-free bonds jumped. Residents can get yields north of 5 percent on intermediate-term general obligation bonds and 6.2 percent on long-term bonds. Nonresidents can buy into the bonds through many national municipal funds, which buy the bonds of many states. The Washington Post

Muni bond downgrades add risk - but potential for higher returns, too
(SPECIAL: pub. July 2, 2009;)
Time for some California dreaming: Will the state plug its budget gap, and are its bonds worth a gamble?

Matt Fabian, of Municipal Market Advisors in Concord, says yes. Interest rates on California’s tax-free bonds have jumped. Residents can get yields of 6.2 percent on long-term bonds. Nonresidents will find the bonds in many national municipal funds. Boston Globe

Wall Street awaits California's short-term borrowing plans
(SPECIAL: pub. July 2, 2009;)
Once California produces a fiscal 2010 budget more or less in balance, Wall Street has been expecting that the state would come looking for short-term financing to bridge the gap between current cash needs and future tax revenue.

Normally, this kind of borrowing -- via so-called revenue anticipation notes, or RANs -- is no big deal. Investors usually are eager to fund the notes because they mature in 12 months or less, and the interest paid is exempt from state and federal income tax. Los Angeles Times

Muni Downgrades Add Risk, Prize to Bond Game: Jane Bryant Quinn
(SPECIAL: pub. July 1, 2009;)
Time for some California dreaming: Will the state plug its budget gap, and are its bonds worth a gamble?

Matt Fabian, managing director of Municipal Market Advisors in Concord, Massachusetts, says yes. As California hurtles toward its budget deadlines this month, interest rates on its tax-free bonds have jumped. Residents can get yields north of 5 percent on intermediate-term general obligation bonds and 6.2 percent on long-term bonds. Nonresidents will find them in many national municipal funds, which buy the bonds of many states. Bloomberg.com

Twins Add $4 Million to Debt Account After Interest-Rate Hikes
(SPECIAL: pub. June 29, 2009;)
The Minnesota Twins transferred $4 million to a debt-service fund for their new stadium after high interest rates caused by 2008’s credit-market turmoil drained an account devoted to paying off the bonds. Bloomberg.com

World Bank to Green Shoots: Not So Fast
(SPECIAL: pub. June 22, 2009;)
By Jon Nadler Bullion values eroded swiftly as the market commenced trading on Monday .... according to Municipal Market Advisors in Concord, Massachusetts. ... International Business Times

Is This a Better Bond?
(SPECIAL: pub. June 22, 2009;)
But Build America bonds are municipal bonds with a twist—their yields are not ... says Matt Fabian, managing director of Municipal Market Advisors, ... Smartmoney.com

Bernanke Must Reassure 'Confused' Market About Rate Strategy
(SPECIAL: pub. June 22, 2009;)
Yields on AAA-rated, 10-year general-obligation municipal bonds rose to 3.49 percent ... according to Municipal Market Advisors in Concord, Massachusetts. ... Bloomberg

Muni bond regulator seeks disclosure by banks
(SPECIAL: pub. June 22, 2009;)
The move is the latest effort by the Municipal Securities Rulemaking Board, ... of Municipal Market Advisors, said the proposed amendment is a good one. ... Bismarck Tribune

Which State Is Next For Bailout
(SPECIAL: pub. May 26, 2009;)
Matt Fabian of MMA Research on states asking for government funding if California receives a bailout. Fox Business News

Small Town, Big Debt
(NEWS: pub. April 8, 2009;)
Municipal bonds are traditionally safe investments, but cities and counties across Tennessee got in financial trouble because they entered the complex world of derivatives. NYT- Thomas Doe

NEW MUNI LEGISLATION IN THE WORKS
(SPECIAL: pub. March 12, 2009;)
In Washington, D.C. it is becoming increasingly likely that the House Financial Services Committee will release legislation impacting the municipal bond market. The legislation is apt to touch on:

• A Federal Guaranty of general obligation bonds at a low cost;
• Reinsurance of the monolines; and
• A backstop of banks providing letters of credits for tax-exempt variable-rate demand obligations.

This legislation could come out as soon as Friday but timing remains uncertain. Policy makers have only said that legislation is “in an advanced stage” and that the Chairman of the committee “signed off on all 3 major components.”

We stress that any proposed legislation is just that. MMA has noted an increasing chorus of policy makers and participants discussing these topics in the past few weeks. We will discuss market impacts in the 12:30 pm Insight today. [ report w/email sign up ]

Sports stadiums face economic fault line
(NEWS: pub. February 9, 2009;)
Everyone, including bond investors, are reading the same headlines," said Tom Doe, whose Concord, Mass.-based Municipal Market Advisors offers consulting services to municipalities. "They see the Yankees spending $400 million on three players, and then wonder, given the economy, are they going to fill all those seats, will anyone pay for the luxury suites and will there still be a naming rights deal." LA Times

Federal debt-purchasing program may exclude states
(NEWS: pub. Ocotober 9, 2008;)
The Fed also might be worried that if it began to lend money to California and other high-profile states, it could set a precedent for bailing out all 64,000 issuers of municipal debt, said Matt Fabian, a principal at Municipal Market Advisors, an independent research and consulting firm in Concord, Mass.

"It sets up a potentially unsustainable demand from other issuers," Fabian said. LA Times

Under Strain, Cities Are Cutting Back Projects
(SPECIAL: pub. September 30, 2008;)
By MARY WILLIAMS WALSH
Local governments have been effectively shut out of the bond markets, raising the cost of operations and threatening larger projects. [ click to NYT ]

Muni Money-Fund Yields Surge
(SPECIAL: pub. September 27, 2008;)
Wall Street Journal - USA
That ratio is "about as high as it's ever been," says Matt Fabian, senior municipal analyst at Municipal Market Advisors. Also propelling muni-fund yields ... [ click to WSJ ]

US Public Finance Market Hit Hard by Capital Freeze
(SPECIAL: pub. September 25, 2008;)
September 25, 2008, By Nicole Bullock in New York
...have a school that is open - that makes a freeze in the muni-market significant," said Thomas Doe, CEO of Municipal Market Advisors (MMA). "If you can't get access to the capital markets, you may have to raise taxes to generate the... [ click to FT ]

Money Market Crisis
(SPECIAL: pub. September 25, 2008;)
Managing Director at Municipal Market Advisors discusses how new money infrastructure volumes are down despite market expansion. Also; effects of the banking crisis on muni markets, the role of individual investors, and new legislation aimed at increasing underwriter participation. DerivActiv (mp3)

The municipal market faces a wide range of risks
(OUTLOOK: pub. September 15, 2008; 9:00a EST)
Like the rest of the global financial system, the municipal market faces a wide range of risks in recent developments, in particular if the knock on effects of Lehman’s bankruptcy, Merrill Lynch’s sale, and AIG’s restructuring begin invasive and widespread credit and confidence trauma. More locally, the reduction of these firms in our industry will reasonably restrict both primary and secondary market liquidity; current holders may have difficulty exiting positions without large price concessions, and issuers may be forced to wait some months before accessing the capital markets. There is also risk that secondary selling or investor redemptions, coming amid a strong flight-to-safety in Treasuries, will exacerbate underperformance and force more bonds into an unfriendly market. However, this is not the end of the muni market; we expect support at or behind current levels from the individual investors who have been, to date, driving muni demand.

”Muni credit may ultimately be strained by the current crisis as issuers’ capital market access is further diminished, infrastructure projects are postponed, and tax revenues cut [ report w/email sign up ]

FSA’S and Assured’s Warnings
(SPECIAL: pub. July 22, 2008;)
Last night, Moody’s issued a downgrade warning on FSA’s and Assured Guaranty’s financial guaranty ratings. While the market had begun to express some caution regarding FSA, the risk to Assured is a surprise. In its reports, Moody’s notes FSA’s exposure to directly-insured residential mortgage backed securities and Assured’s relatively concentrated portfolio, while both companies face very difficult new structured finance business generation (insured US structured paper issuance is down 97% YTD).

The report also alludes to a potential drop in municipal investor demand once Moody’s public finance group shifts municipal bond ratings to the global (corporate equivalent) scale. Finally, we believe Moody’s is also attempting to shore up the value investors’ place in Aaa ratings generally (we have heard repeatedly from investors that “Aaa” is no longer the indicator it once was). [ report w/email sign up ]

Tom Doe: Prop. & Casualty Industry Slowdown Will Bring Muni Supply; Panic of 1837
(SPECIAL: pub. July 8, 2008;)
Tom Doe, CEO of Municipal Market Advisors speaks on the property and casualty insurance industry and its possible reduced need for tax-exempt income. Also: primary volume trends, the month of July in historical perspective, and the similarities of today with the Panic of 1837. DerivActiv.com MP3

Matt Fabian: Using the MMA Consensus as a "Behavioral Overlay" to the MMD
(SPECIAL: pub. May 28, 2008;)
Matt Fabian, Managing Director at Municipal Market Advisors says the MMA Consensus is a “powerful and predictive” market indicator. Also: the BMA swap on the rise as a hedging vehicle, Moody’s credibility concerns, and the lessening value of bond insurer ratings. DerivActiv.com MP3

MMA Muni CDS (MCDX) NEW REPORT
(SPECIAL: pub. May 6, 2008;)
CREDIT DEFAULT SWAPS. Today, Markit launched MCDX, a new index of seven or more dealers’ daily evaluations of 50 uninsured, investment grade municipal credit default swaps (CDS). Accounts are able to take long or short positions on the index, reasonably correlating to their respective views on generic muni credit and rates. In general, our initial opinion is favorable—CDS should lead to stronger demand for muni bonds and more consistent credit risk pricing. But there are notable risks as well, including amplified counterparty exposure and cash market pricing volatility.
[ report w/email sign up ]

MMA"s Response To Moody’s Proposal For Global Scale Ratings For All Issuers
(SPECIAL: pub. Apil 14, 2008;)
Municipal Market Advisors generally supports Moody’s proposal to provide Global Scale Ratings (GSRs) for all municipal issuers, regardless of tax status. However, we believe the following improvements are essential to more permanently resolve the problems the municipal scale has created for issuers, investors, and regulators. These improvements are:... [ report w/email sign up ]

Supreme Court Muni-Bond Delay Has Lawyers, Markets Puzzling
(SPECIAL: pub. April 9, 2008;)
(Bloomberg) -- ''The length of time to me means that there could be more subtlety to the decision, or that the decision itself might not be as cut-and-dried as we had expected,'' said Matt Fabian, managing director at Municipal Market Advisors, a Concord, Massachusetts-based research firm.... [ click to Bloomberg.com ]

MMA Special Coverage: Congress Critical But Will Allow Industry To Self-Regulate For Time Being
(SPECIAL: pub. March 13, 2008;)
The hearing was colorful, Several members — notably chairman Barney Frank (D-Mass.), Rep. Michael Capuano (D-Mass) and Rep. Emanuel Cleaver (D-Mo.), the latter two are former mayors — took the opportunity to blast state treasurers on the panel , the bond insurance industry and the rating agencies for letting the market be “held captive” by a dual-rating standard. Frank opened the hearing in Biblical fashion telling the audience: “Let my people go,” referring to local and state governments... [ report w/email sign up ]

Munis: The new power portfolio
(SPECIAL: pub. February 12, 2008;)
(Money Magazine) -- If there's a lesson to be learned from the stock market's recent slide - triggered by massive losses on exotic and risky mortgage-backed securities - it's that there's nothing wrong with simple, boring investments. Like girders supporting a bridge, plain-vanilla bonds can help buttress a portfolio in a shaky market such as this.

But in January, high-quality five-year munis - those rated triple A by agencies like Standard & Poor's or Moody's - were paying out 2.80% on average, according to Municipal Market |ADVISORS. That was notably higher than the 2.53% yields of five-year Treasuries. Yes, rates are still modest in absolute terms. But "it's been very rare that you can buy a true triple-A-rated muni bond at 100% of Treasuries," says George Strickland, managing director of Thornburg Investment Management. [ click to Money.com ]

Next phase of credit crunch, the monoline meltdown
(SPECIAL: pub. February 8, 2008;)
MARK COLVIN: The global credit crunch is entering a dangerous new phase. In the United States, big bond insurers are facing huge losses. They're the companies that insured the debt of defaulting subprime mortgages. Many of them are now facing ratings downgrades and potential collapse. That's a major worry because if the bond insurers fail, it will create a vicious cycle as their investment bank customers are left holding the can. Some experts say the banks could suffer an extra $US 100-billion in losses and write-downs, causing a fresh round of turmoil on credit markets and stockmarkets. [ click to ABC.NET.AU ]

Do Bond Insurers Need CPR? Fears of a muni market meltdown may be overblown
(SPECIAL: pub. February 8, 2008;)
"By and large, the decision is made by the investor." Adds Matt Fabian, managing director of research firm Municipal Market Advisors: "It's not about credit quality. It's just a bureaucratic cost municipal issuers have to pay." [ click to BusinessWeek.com ]

Davis V. Kentucky - Decision
MMA is expecting a Supreme Court Decision on the Davis v. Kentucky case in the next few weeks; the likely outcome will affirm states’ ability to tax in- and out-of-state bonds differently and shore up the muni market status quo.

Next Big Crisis Could Involve Bond Insurers
(SPECIAL: pub. January 31, 2008)
There are $2.6 trillion worth of municipal bonds outstanding in America, with New York State holding about 7.5%, or roughly $200 billion, according to research firm Municipal Market Advisors. click to NY Sun

In the absence of a credible bailout...
(SPECIAL: pub. January 31, 2008)
"In the absence of a credible bailout plan, I think investors and issuers need to assume that MBIA, along with all of the other companies, will face continuing, worsening downgrade pressure all year,'' Matt Fabian, a managing director at Concord, Massachusetts-based consulting firm Municipal Market Advisors, said in a telephone interview. click to Bloomberg.com

Downgrades aplenty
(SPECIAL: pub. January 25, 2008)
"[The insurers] have a real lot of exposure to subprime credit cards and auto loans, for example. As those asset classes don't perform as well, even if you see a fraction of the damage you have seen in sub-prime housing, it is going to cause the ratings agencies to increase the requirements again."... click to BusinessSpectator.com

Corporate Ratings for Municipals?
Most municipal bonds are rated on a different, more conservative rating scale than corporate bonds. Triple-A US corporate bonds have up to 10x the historical default rate of single-A munis (Fig. 1). Neither municipal issuers, nor the individual investors who own the large majority of outstanding paper or fund shares, understand this point. As a result of the “muni rating scale,” taxpayers likely pay a large premium to access the capital markets (via insurance and rating fees and higher interest rates). We recommend that state and local issuers, or their federal regulators, consider requiring rating scale equivalency either directly or by policy alternative. [ report w/email sign up ]

2008 Brings Uncertainty and Also Opportunity
There are substantial uncertainties in municipals, but market-level risks one way or the other do not appear large. Last week, yields rallied across the curve with economic and corporate data raising fears of recession, and with an apparently solid January reinvestment bid putting away a fairly thin supply of paper. This was, once again, a difficult week for hedged or arbitrage-oriented investors as tax-exempts underperformed Treasury strength, and muni relative value indicators were pressed almost uniformly cheaper.

While we continue to recommend holding back some liquidity allocation to take advantage of any negative repricing, near-term prospects for such appear limited. Thus, with credit and maturity spreads returning, there is some yield opportunity for buy-and-hold investors willing to extend out along the curve. Total return investors are better positioned 5-10yrs [ report w/email sign up ]

NYT: These Bonds May Shine (Despite Your Tax Bracket)
Hedge funds with large leveraged positions in municipal bonds contributed to the situation. These hedge funds had shorted Treasuries to hedge against their muni bets, explained Thomas Doe, founder and chief executive of Municipal Market Advisors. As Treasuries began to rise, the hedge funds had to sell munis to cover their exposed shorts in Treasuries. “Last August was the first time rates went down and muni yields rose,” Mr. Doe said. “That’s because leveraged investors had to sell their munis.” click to NYT site

CNBC: Matt Fabian discussing municipals with Ron Fielding from the Rochester Oppenheimer Funds.
Trouble in the debt markets also took a bite out of municipal bonds in August. Matt Fabian Municipal Market Advisors sr. analyst, and Ron Fielding, OppenheimerFunds portfolio manager, discuss the cause of the bust and where the recovery begins. click to CNBC video

theStreet.com - Mortgage Crisis and Muni Bond Funds
Earlier this year, before the tender-option-bond programs started backfiring, investors using this strategy accounted for about 8% of the $2.4 trillion market, according to Municipal Market Advisors, an independent research and strategy firm. click to theStreet.com story