The municipal market is a complex market and requires expertise. It has been said that the Treasury market has the yield curve, the mortgage market adds optionality, the corporate market adds credit, and the municipal market adds politics to all these other considerations. The municipal market is very driven by supply and demand, which can be driven by legislation. Many taxable portfolio managers have lost money “crossing-over” to the municipal market without a thorough understanding of this market. Generally, taxable portfolio managers do not pay attention to taxation in their trading nor to the coupon on their bonds. Understanding the structure (i.e. coupon, maturity, call) is critical to portfolio construction.