Municipal bonds have regained their safe haven status as volatility returns to the stock and bond markets. They have also been getting a boost from yield-starved, go-anywhere overseas investors, said Robert Amodeo, portfolio manager for Western Asset Management. "Overseas investors are looking for yield in liquid, stable markets and muni investors should take that as a vote of confidence," said Amodeo. Amodeo oversees the Western Asset Managed Municipals Fund (SMMYX) which is up 4.1% so far in 2016, according to Morningstar.

More from Emerging Markets

Wall Street Looks To Extends Gains After Goldman Earnings Beat, China Data

Wall Street Looks To Extends Gains After Goldman Earnings Beat, China Data

China's President Xi Jinping Tells Boao Forum He Supports Opening Markets

China's President Xi Jinping Tells Boao Forum He Supports Opening Markets

U.S. Stock Futures Steady; Asia Stocks Mostly Lower

U.S. Stock Futures Steady; Asia Stocks Mostly Lower

Jim Cramer: There Are Plenty of Shorts in Constellation Brands

Jim Cramer: There Are Plenty of Shorts in Constellation Brands

Renault Shares Hit 10-Year High on Nissan Merger Report

Renault Shares Hit 10-Year High on Nissan Merger Report