Health care and housing remain two of the most risky sectors in the municipal market, with the federal health care bill and the sluggish real estate market contributing to skepticism about the sectors. But muni experts say some distressed debt is safe enough to be a buying opportunity.

“The concern there is health care legislation from a federal level and what that might mean for local hospitals,” said Howard Cure at Evercore Wealth Management. “Look at hospitals and the payer mix. If a large proportion of the mix is poor citizens and higher Medicaid recipients, that is a concern.”

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