Nevertheless, some banks will keep their exposure to munis above the minimum standard, regardless of regulatory changes. For instance, Citigroup (NYSE: C) has expressed interest in keeping above the minimum, with Howard Marsh, head of the munis division of a unit of Citigroup, pointing to the benefits of cash generation in times of a crisis.
The iShares Municipal Bond ETF tracks a group of investment-grade bonds issued by U.S. municipalities. The ETF has a 1.76% 30-day SEC yield or a 3.11% tax equivalent SEC yield for those in the highest income bracket.
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.