- Could your munis default? 5 tips for finding safety
- POSTED 05.30.10
Repeat after me: tax-free municipal bonds rarely default. It’s unthinkable for a state not to pay the interest on its debt.
Then pause for a moment. Is anything really unthinkable anymore? You buy munis for security. Some of the bonds you’re holding, in a mutual fund or an individual portfolio, no longer measure up.
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