WASHINGTON-Market participants hailed last Tuesday'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, including the Investment Company Institute alike-reflected the dire consequences for the market had the high court ruled differently. (Please also see "State Muni Tax Cases Threaten Funds," MME, 4/29/08.)

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