It was only a few months ago that investors were pulling huge sums of money out of municipal bond funds, after warnings from some experts, including economist Nouriel Roubini and analyst Meredith Whitney, that a wave of defaults by hard-pressed public agencies, towns and states could end up costing investors up to $100 billion.

Well as it happens, Morningstar muni-fund analyst Miriam Sjoblom says that there may be only about $1 billion worth of defaults by public issuers in all of 2011, which would actually be an improvement over the amount of muni defaults recorded in 2010 and 2009.

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