WASHINGTON — Market participants hailed yesterday’s long-awaited but widely expected Supreme Court decision that upheld 42 states’ preferential tax treatment of their bonds as a “resounding victory” for the municipal securities market.

The near-unanimous support for the 7-to-2 decision in Department of Revenue of Kentucky v. Davis — from fund managers, attorneys, state officials, and industry groups alike — reflected the dire consequences for the market had the high court ruled differently.

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