Given the recent rebound in the muni bond market it seems like we can safely close the current chapter.  After a steep descent and massive outflows from muni bond funds it seems like the decline is over.  We have been discussing the situation in the muni market for some time now noting the influence that a report Meredith Whitney published had on public perceptions.  While the long term story of municipal finances has yet to be written, for now, it seems like some measure of calm has returned.  However given this episode investors may be more likely to pull the trigger when talk of municipal bankruptcies arises again.  In today’s screencast we look at the volatility in the muni bond market.

Items mentioned in the above screencast:

Bob Brinker, “$MUB closes on highs … my work is done here.” (StockTwits)

The panic in the muni bond market seems to be over.  (Bespoke)

Outflows seems to be subsiding from muni bond funds.  (Bloomberg)

Expect continued volatility in the muni bond market.  (Felix Salmon)

Meredith Whitney will only be proven right (or wrong) over the long term.  (NetNet)

Daily price chart of the iShares S&P National AMT-Free Muni Bond ETF (MUB).  (Finviz)