Despite the weakness in the municipal market last week, as well as the preceding week's sell-off, there is value and opportunity on the horizon in the tax-exempt sector, says a recent report from BlackRock Inc.

"While 2011's price appreciation is unlikely to be replicated, 2012 holds the potential for attractive income relative to Treasuries with continued moderate volatility," Peter Hayes, managing director at BlackRock, wrote in his March 20 point of view: "Munis Make Their Mark: The Awakening of a Once 'Sleepy' Asset Class."

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