Weekend Investor: Why High-Yielding Muni Bond Funds are Falling

Weekend Investor: Why High-Yielding Muni Bond Funds are Falling

Weekend Investor: Why High-Yielding Muni Bond Funds are Falling 150 150 Emily

Enthusiasm for closed-end municipal bond funds, long a favorite of income-starved investors, is starting to wane.The funds, which use leverage to magnify yield, have been a go-to investment. But prices are down in recent months as investors have backed away, worried about rising interest rates, budget cuts and the risk that lawmakers may reduce the tax benefits of investing in muni bonds.