Can municipal bond futures contracts minimize financial risk?

In June 1985, the Chicago Board of Trade began trading in a futures contract based on a composite index of municipal bonds. Some financial advisors have described this development as a potential benefit to those hospitals that rely on tax-exempt debt as a funding source, because the financial risks specific to tax-exempt securities can now be minimized. The municipal bond futures contract may indeed prove to be a valuable financial tool. However, the direct applications of this contract appear to be limited for most hospitals. On the other hand, the indirect benefits probably have the greatest positive effect on not-for-profit organizations.