Municipal managers say they're continuing to shield their clients' assets from higher interest rates, even though some are skeptical that a spike is imminent almost six-years after the Federal Reserve cut its target to near zero.

Managers interviewed this week said they are sticking with a "better to be safe than sorry" approach and adopting defensive strategies aimed at enhancing credit quality and limiting interest rate sensitivity. Dan Genter, chief executive officer and chief investment officer at RNC Genter Capital Management in Los Angeles, is among those preparing for the rate hike, even though he doesn't believe it will happen any time soon.

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