munis

Besides well-publicized strains on local finances, there is growing recognition that investing in "munis" involves a leap of faith.

Jumping Into Munis Requires a Leap of Faith

He is using them in the short end of a "muni barbell," or a portfolio that is weighted between short- and longer-term munis, with few maturities in between.

Five Reasons to Rethink the Muni Rally

Two of the main factors roiling the muni market were a surge in supply amid uncertainty about a popular bond-subsidy program and rising Treasury rates — which long-term munis tend to track — triggered by the Federal Reserve's bond-buying program, analysts say.

Munis Got Upended in 2010, and the Outlook Is Mixed

Even as the general market price of long term munis dropped over 20% in the fourth quarter of last year, virtually every major Wall Street investment bank continued to reassure investors that municipal bonds were a great buy.

Chriss Street: Why Bankers Want a Muni Bond Taxpayer Bailout

To be sure, while companies are required to turn in their audited financial information earlier, some argue that plenty of information about munis is available.

Muni Issuers Are Slow on Audits, Study Finds

Shorter-term munis are even pricier: The percentage of an AAA-rated five-year muni to a five-year Treasury is now just 67%, down from 96% on Jan. 14.

Five Reasons to Rethink the Muni Rally

Even as the general market price of long term munis dropped over 20% in the fourth quarter of last year, virtually every major Wall Street investment bank continued to reassure investors that municipal bonds were a great buy.

Chriss Street: Why Bankers Want a Muni Bond Taxpayer Bailout

Long-term munis have fewer natural buyers—they are owned primarily by mutual funds and insurance companies, not retail investors.

Five Reasons to Rethink the Muni Rally

Unlike regular junk bonds, however, interest from high-yield munis is generally free from federal income taxes.

Fundline: SEC puts leveraged funds on hold

Treasury yields, which long-term munis tend to track.

The Weak Get Weaker as Muni Bonds Are Sold Off