That seems to be the take away from this story examining the pros and cons of the US municipal bond market since 2010:
Whitney rocked the fixed income world when, during a December 2010 appearance on "60 Minutes" she forecast 50 to 100 muni defaults in 2011 that would cause damage in excess of $100 billion.
Though munis saw only 28 muni defaults in 2011 and about two dozen this year, most of which were comparatively small in dollar value, Whitney told CNBC as recently as March that a "tidal wave" of defaults looms.
"Ultimately, her numbers...are not out of the realm of possibility over the long term," Coffin says. ...
Overall, investors in the $3.7 trillion muni bond market seemed not to have cared much about the individual gloomy headlines.
But think about it: a worst case scenario $100 billion hit to a $3.7 trillion market is less than 3 percent. I seem to recall though that the prediction was reported as hundreds of billions of dollars.
As ever, whatever it is, diversification is key.
