Pensions and other post-retirement benefits will continue to be a growing concern for municipal governments and muni investors for years to come, says Morningstar municipal credit analyst Rachel Barkley.
Mutual funds with the flexibility to take advantage of attractive yields in long-dated municipal bonds are a good pick for individual investors, says Morningstar's Miriam Sjoblom.
The largest exchange-traded fund tracking municipal bonds traded at a discount to its underlying assets for the first time since July as states and cities flooded the market with the most borrowing in six months.