Portfolio

Volatility and speculation about defaults and bankruptcies in the municipal market continue to spook issuers and investors, affecting volume in the primary market.

Investors established a new record for withdrawals from municipal bond mutual funds last week as headline risk continued to chase people from state and local government debt funds.

“High-risk” allocations fell to 15% from 24% in 2006.

The Conference Board Leading Economic Index for the U.S. rose 1% in December to 112.4, following a 1.1% gain in November and a 0.4% rise in October.

Frost Investment Advisors has launched the Frost Diversified Strategies Fund, a mutual fund that combines hedge and private equity approaches. The fund seeks to reduce downside volatility while providing upside investment opportunities.

The latest report from LoanPerformance, released this week, showed another notable decline in November, with prices down 5% from the recent peak in May.

Tax-exempt money market funds posted their first decline since mid-December as outflows of $4.35 billion trimmed total net assets to $329.91 billion for the week ended Jan. 17, according to the Money Fund Report, a service of iMoneyNet.com.

The sophisticated investor in retail municipal bonds has ­remained calm the past few months even as mutual funds have dumped state and local ­government debt by the truckload.

The Securities and Exchange Commission approved two sets of rules for asset-backed securities Thursday, including one that would apply to certain municipal securities in early 2015.

James Carney, president and chief executive officer of ByAllAccounts, says profitable and effective practices are changing their priorities and being more progressive in their thinking this year. He offered seven habits that will help firms regain profitability.