If you’re one of the many investors in the $3.9 trillion municipal-bond market, the coronavirus may have you asking: are my safe-haven municipal bonds really that safe?
Municipal bonds –– bonds issued by governments and agencies, often to finance projects like airports, schools and infrastructure –– have long been considered a low-risk source of retirement income. These state and local bonds have a historically low chance of defaulting, and most of them are tax-free so, unlike corporate bonds, investors don’t have to pay taxes on the interest. But the coronavirus has shaken confidence in the safety of these bonds, as investors wonder if cash-strapped governments can continue to pay the interest on their debt.
Read more here: https://money.com/are-municipal-bonds-safe-coronavirus/