Bloomberg reported Whitney is losing credibility as her prediction of widespread defaults isn’t playing out. Defaults in state and local government debt fell 60% in the first half of 2011 compared with the year-ago period, according to the report.
Yet there have been rumblings in the muni bond market. Minnesota’s government recently shut down after a budget impasse, while New Jersey reportedly needs a bank loan to cover a revenue deficit. [State Deficits May Rattle Muni Bond ETFs]
Whitney in an interview last month said she stands by her controversial call on muni bonds. [Muni Bond ETFs Rise as Meredith Whitney Sticks to Her Guns]
iShares S&P National AMT-Free Municipal Bond Fund
