Fri, 19 Jul 2013
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The outcome of the Detroit's distressed-debt situation could be a litmus test for how other municipalities nationwide move forward with their payment obligations.
The firm's diversified domestic equity funds, international equity, and muni funds have done particularly well, says Morningstar analyst Katie Reichart.
Despite the scare of recent bankruptcies and downgrades, municipalities have the resources to continue making bond payments, while looming tax increases likely won't affect muni demand, says Morningstar's Jeff Westergaard.
Although several U.S. municipalities have declared bankruptcy , muni bonds overall remain extraordinarily safe in terms of default risk, says Morningstar's Jeff Westergaard.
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