The pandemic is doing a number on state munis as their revenue streams are being slashed. The states are pleading for a Federal bailout even as Mitch McConnell has said he would prefer they go bankrupt. Well . . . . .
Unlike Uncle Sam the individual states cannot just print funny money. Nevertheless states do not go bankrupt per se. Instead they default on their bonds . . . . which you do not want to be holding at that point.
Forbes addresses the situation in this article from last Sunday. Each state is listed along with its current Moody’s rating. Some of them will surprise you. Even if you’re not holding state paper currently, you might be interested to learn how your state is rated.
I owned a large pile of muni bonds years ago; made good money and never suffered a default. They’re all long gone now. And I’m not buying any more.