Municipal bond exchange traded funds cratered in the second half of last year due to Ben Bernanke's tapering talk. Nevertheless, that will change in the coming year, says Jim Colby, Senior Municipal Bond Strategist at Van Eck Global, because tax rates are still rising and the Fed's actions are priced into the market. Furthermore, overall muni- bond credit quality remains high even though fiscal problems in Detroit, Illinois, and Puerto Rico are making headlines.

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