The muni market can make a half-awake nightmare become a live reality. It would be an understatement to call this principal-first, stable fixed income sector merely skittish and easily rattled. What is the monster that munis are afraid of? Tax cuts? Losing tax exemption status? DC cutting state aid? These are all minor concerns day-to-day in muniland, but the big boogie monster is volatility. This month, MainLine takes a look at the impact of price movements on muni performance to determine whether investors need to be scared of the “Muni Fear".
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