Looking ahead, observers are growing increasingly concerned about Chicago’s finances. The city has more general-obligation debt per person than any of the ten largest cities, except New York.
On the other hand, investors can take a look at the db X-Trackers Municipal Infrastructure Revenue Bond Fund (NYSEArca: RVNU), the first ETF to focus exclusively on revenue bonds, or those munis that are supported by revenue from projects such as toll roads or bridges.
Revenue bonds skirt pension risk, meaning RVNU offers investors the income and conservative posture they’re accustomed to with muni ETFs without the fears of capital loss at the hands of increasing muni bankruptcies. [A Muni Bond ETF that Sidesteps Default Worries]
For more information on the munis market, visit our municipal bonds category.