Last year was supposed to be the municipal bond market's Armageddon. Yet the year ended not with the wave of defaults that many predicted, but the types of returns of which other asset classes could only dream.
Sure, municipalities are still under severe financial strain. The lukewarm economy continues to sputter, but the defaults never materialized. Investors have returned to munis in the last 12 months based largely on the strong gains. The typical fund in the intermediate municipal category returned 9% in 2011, according to Morningstar. The S&P 500 posted just a 2% gain.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access