Municipal bonds had a solid year in 2015 and judging by the group's fundamentals the coming year should be similarly positive, said Robert Amodeo, head of municipals at Western Asset Management. 'Tax receipts have come in stronger over the last handful of years and austerity fatigue has not really settled in so spending remains at moderate levels,' said Amodeo. 'There is some weakness in spots, but overall it's a healthy marketplace.' One of those weak spots clearly is Puerto Rico, where the island's government is already struggling to meet its debt obligations and is seeking relief from creditors. Amodeo calls Puerto Rico's problems an 'isolated event' and anybody who bought those bonds understood the risks. Amodeo said his only exposure is a small position of insured Puerto Rico Water and Sewer Authority debt. He said Chicago and Illinois debt are the other big trouble spot and he is avoiding those as well due to their massive unfunded pension obligations. At least for the time being.