A year after high-yield municipal bonds rallied, some analysts say the market may be in for the first turn in the credit cycle in nearly three years.

They point to declining demand for high yield paper against the backdrop of rising rates and growing credit concerns. Yield spreads demanded by investors on lower rated credits remain wider than the historic average, though they've narrowed since the post-election selloff.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.