Municipal bond exchange traded funds (ETFs) were caught in a wave of fear as investors became worried about state and local defaults. The turbulent waters have quieted some, but are the sharks still circling?

The clearest sign yet that the panic has abated can be found in municipal-bond yields, which move opposite to prices. As prices recovered, yields have come back down. [Muni Bond ETFs Trading In Choppy Waters?]

But whether the muni bond market can be considered “healthy” at this point is up for some debate.

Michael Corkery for The Wall Street Journal reports that many questions remain about the stability of the muni bond market and whether it can be trusted. Is the stability the result of technical factors, such as fewer bonds coming to the market?