The manager of the Oppenheimer Rochester National Municipals mutual fund, down a steep 7.8% so far this year, has reduced his fund’s exposure to one area that has hurt it badly this year: municipal airport authority bonds back by AMR Corp.’s American Airlines.

Airline-backed muni bonds have suffered this year, as the slow economy and terrorism fears have eaten into travel volume and raised the specter of bankruptcy filings by American and other carriers, The Wall Street Journal reports.

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