A lack of supply due to fiscal austerity and balanced budgets is boosting municipal bond prices in 2014, says Tom Metzold, portfolio manager for the Eaton Vance National Municipal Income Fund. Metzold says demand is also high because munis are currently providing some of the highest after-tax returns available out of any asset class. He says high yield munis have had a great run, however he does not advise investors stretch for yield. Finally, he says he prefers revenue over general obligation bonds, and adds that his team's diligent credit research helps the fund avoid trouble spots.

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