Market participants say that municipal bonds could be a key component to reach the infrastructure goals President Barack Obama outlined in his State of the Union address. Michael Decker, co-head of muni securities at SIFMA, said Obama's mention of infrastructure is good for the market, but his speech pointed out a number of threats to the muni market. "Sooner or later the federal government will have to come up with a fiscal reform initiative that will shrink the deficit," Decker said. "If revenue is on the table, then the municipal market faces a risk that there could be a curtailment of the tax exemption."

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