Financial Planning News
Tue, 25 Jun 2013
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Munis have faced both interest rate and credit risk pressures, but at current levels, this varied asset class is worth considering, especially for those in higher tax brackets, say Morningstar's Candice Lee and Eric Jacobson.
Morningstar's Miriam Sjoblom discusses how to gauge whether a muni fund is more apt than a taxable- bond fund, yield risks and other key focus points, and some of her muni -fund recommendations.
Despite their extra income, nonrated municipal bonds can expose investors to lower-credit-quality, less-liquid issues with a tremendous research requirement, says Morningstar's Eric Jacobson.
Despite risks in the muni - bond market, defaults are isolated, and the diversification in muni CEF portfolios helps protect against credit problems.
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