Municipal bonds have traditionally been considered, rightly or wrongly, mundane assets that require little regulation. However, the most recent financial crisis did not leave municipal bonds untouched. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and liquidity...

For years, municipal bonds were considered “safe” investments. The perception of safety combined with political considerations meant that municipal bonds have traditionally not been subject to heavy regulation. However, as a result of the 2008 financial crisis and some high-profile municipal...