The mutual fund industry has yet to catch on to the full implications of the SEC's approval of a new set of rules that would likely alter their investing behavior in the municipal bond market.

Even after months since the rules were approved, the fund industry is not engaged, outside of a few closed circles. If these rules are enacted, open-end mutual funds and ETFs that invest in municipal securities are likely to become more risk-averse in a variety of ways that have implications for issuers and other investors that perhaps have not been fully considered by executives.

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