municipal bond funds

What Government Defaults Mean for Muni Bonds

U.S. municipalities have filed five bankruptcies this year, and -- next week -- Jefferson County, Ala., could make a sixth. Could city and county defaults shake the muni-bond market just as investors are fleeing to it amid stock-market declines?

Alabama County on the Brink of Bankruptcy

Investors and officials in Jefferson County, Ala., are trying to negotiate a deal to avoid bankruptcy by Thursday's deadline. If they're unsuccessful, the county could end up with the largest Chapter 9 filing in U.S. history, which could rattle the $2.9 trillion municipal bond market.

One Safe Way to Invest Now in Municipal Bonds

After respected banking analyst Meredith Whitney rattled the municipal bond market with her prediction of hundreds of billions of dollars in muni defaults, small investors dumped the bonds. That dire prediction may yet come true, but there are a few types of munis that still carry virtually no risk.

Chicago's Next Mayor Could Find City Coffers Almost Empty

Chicago%u2019s next mayor may will find the city%u2019s coffers almost empty after Richard M. Daley dipped into reserves to balance this year%u2019s budget. The city expects a $654.7 million deficit for 2011, Bloomberg News reported. Daley balanced this year%u2019s budget partly with reserves. If he uses funds from leasing parking meters, garages and a toll road to fill the 2011 gap, the city will be left with only $121 million.