Munis Beat All Assets in Longest Streak Since 2006: Muni Credit
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U.S. state and local debt returns will exceed those on stocks, Treasuries, corporate bonds and commodities for a second straight year when adjusted for volatility, the longest winning streak since 2006.
Defaults on local bonds this year dwindled to the lowest since at least 2009 and state tax revenue rose to pre-recession levels. Even with interest rates near four-decade lows, the $3.7 trillion market was more appealing to U.S. investors seeking shelter from Europe’s lingering debt crisis and potential federal tax increases in 2013.