The municipal bond market has traditionally been viewed as a relatively safe market, where credit risk wasn't a primary concern. The spate of fiscal crises that state and local governments have experienced in recent years, however, has changed this narrative.
Credit Default Swaps on Municipal Bonds: A Double-Edged Sword?,
Yale J. on Reg.
Available at: https://digitalcommons.law.yale.edu/yjreg/vol35/iss1/6