For taxable investors, municipal bonds offer good value. Dislocations in the municipal bond markets (e.g. auction failures and uncertainties regarding the solvency of bond insurers) have pushed muni bond yields to historically high levels relative to Treasuries. For taxable accounts, the PowerShares VRDO Tax-Free ETF (PVI) offers an attractive short-term, high quality fixed income alternative with a taxable-equivalent yield as high as 4.67% (see table at bottom of page).