Municipal credit quality has improved, widespread defaults are unlikely, and the municipal bond market if rife with investment opportunities, thanks to fourth-quarter growth in state tax revenues, according to U.S. Trust, Bank of America, N.A.

The asset management firm said the 5.2% year-over-year growth reported by the Rockefeller Institute of Government “is a positive for overall municipal credit quality,” and is strong enough to ward off systemic, widespread municipal defaults that either were predicted by Wall Street analysts since the economic downturn, or that occurred in past recessions.

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.