There is concern growing within the municipal bond market as a result of the recent high profile bankruptcy filings by the California cities of Stockton, Mammoth Lakes, Compton, and San Bernardino. The concern is that bond payments will not be treated as a priority obligation. Municipal bonds have historically had the reputation for safety and dependability. The Internal Revenue Service grants most of them tax-free status to further encourage investment. It has always been assumed that the municipalities would make good on their promise to pay interest and principal even if it meant raising taxes or doing without other expenditures.