A greater share of municipal bonds will be taxable in 2010 than this year and credit quality is expected to decline over the next five years due to pressure from the economy and rising pension and health care costs, according to results of a new survey conducted by The Bond Buyer and the Securities Industry Financial Markets Association.

Respondents to the survey, conducted by e-mail and online in the first two weeks of December, said municipal market volume in 2010 is expected to be about equal to this year's. However, next year the taxable borrowing programs created in the American Recovery and Reinvestment Act are likely to be responsible for more than 22% of the total, up from the 19.6% they accounted for in the first 11 months of 2009.

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