A new study by the Kroll Bond Rating Agency on municipal bond defaults dating back to the Great Depression casts a positive light on the muni industry, saying there will be “no material increase” in defaults over the next three to five years.

“Our study finds that widespread municipal bond defaults have not been a feature of the most recent downturn and we do not expect a sharp increase in defaults over the foreseeable future,” wrote Jerome Fons, executive vice president for strategy, and Tom Randazzo, managing director, co-authors of “An Analysis of Historical Municipal Bond Defaults.”

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