Many large municipal bond mutual funds and closed-end funds have lost 10 percent or more of their NAV since November, and some clients may be wondering if they should lighten up or leave munis.
The key point to emphasize is that there are vast differences in the debt burdens, tax structures and "solvency consciousness" among the 50 states. A useful took for showing clients differences is located here.
All 50 states are ranked from first to last in terms of solvency and fiscal prudence. You can use this tool to emphasize the value of active fund management and in-depth credit analysis in choosing general obligation (GO) muni bonds or funds.
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