Longwave

Bond ETFs: Time to Stock Up, As Munis Yield More Than Treasuries

I'm worried that the unfunded state and municipal employee benefits will result in many of these governments defaulting on their bond obligations. Another factor affecting their ability to meet obligations is the inevitable decline in property tax revenues as the write-downs in housing values hits their tax roles. And I think it's safe to say that the rating agencies have their heads in the sand.I know most municipal bonds are insured, but we've learned from the sub-prime mortgage mess that the insurers themselves are in precarious situations.