The steepness of the yield curve is rewarding investors for upping their interest rate risk, says Nick Venditti, associate portfolio manager for Thornburg municipal bond portfolios. As a result, Venditti says he is putting more money to work along the further rungs of the ladder, primarily 8-10 years out. He also says muni-bond fund managers are closely watching Detroit's bankruptcy hearings to see if bondholders are being treated fairly compared to pension holders.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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