Those wanting a glimpse into the future of the municipal bond market may want to take a look at the past, some market participants said at an industry conference earlier this week.

The market may reflect more what the it looked like in the mid-to-late 1980s and early 1990s than what it looked like in the intervening years, Goldman, Sachs & Co. managing director Edward Droesch said at the Securities Industry and Financial Markets Association's Municipal Bond Summit. The market is moving back to basics and putting more emphasis into credit-by-credit analysis that was marginalized to a degree as the market became somewhat commoditized by bond insurance, he said.

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