I don't think that munis will be be a problem near term, but obviously there are some major issues that the states and municipalities are facing.
I suspect that some of Warren Buffett's comments are also meant to be somewhat of a "wake up call" as opposed to seeing any looming dangers in the next few months.
The problems that the muni market is facing have been mitigated somewhat by the "Build America Bonds", which has moved a lot of the muni supply to the taxable market. These bonds - which pay corporate bond yields but are subsidized by the federal government - have been a huge hit, and municipalities have been aggressive issuers.
In addition, munis have recently benefited from the widespread belief that much higher tax rates are in the cards.
Given my outlook for lower interest rates, I have been focusing on munis in the 7 to 12 year maturity range. However, I have also been sticking with higher quality issues, given the uncertain credit times we are facing.
Buffett sees 'terrible problem' ahead for muni bonds - Investment News
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