The muni market is a train wreck. Huge hedge funds continue to unwind creating the best buying opportunity for investors in decades.
Usually the big institutions make money while the little guy gets screwed. In today's muni market the little guy gets to make money while the big institutions take it on the chin. How many times have we seen that happen?
In times past when doing equivalent yield calculations the munis only came out better when figuring in the tax benefit. Today, the one through five year treasuries yield less on face amount than do their counterpart AAA munis. The 30 year treasury yield is equal to the 30 year AAA muni at a 4.60%. That's better than a 7% TEY for those in the 35% tax bracket!