While municipal bonds are becoming increasingly politicized as the debate over eliminating their tax exemption heats up, many analysts say it won’t become a serious issue until the 2012 elections.

When discussing the possibility of muni bonds becoming taxable, “the more likely outcome remains the path of least resistance: no change at least until after the 2012 election,” researchers at Morgan Stanley wrote in a report last week.

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.