Remember back when the biggest scare on the street was the potential for municipal bond defaults? Last fall, analyst Meredith Whitney made headlines in a "60 Minutes" interview when she called for a spate of municipal bond defaults and said the meltdown would be as big as the real estate crash. Back then her comments caused fears to ripple throughout the muni bond market as investors rushed for the exits.
Over the last six months, however, the dire predictions that were common place in the muni bond market last Fall have so far failed to materialize, and the muni bond market has been showing steady and under the radar improvement. Now today, MUB, which is a popular ETF used as a proxy for the muni bond market, is on track to close above its 200-DMA for the first time since November 9th.