Munis to remain attractive even with lower top tax rate - Goldman

|By:, SA News Editor

The taxable equivalent yield of municipal bonds would remain north of 4% (from the current roughly 5%) even if the top tax bracket drops to 33% from the current 43.3%, according to Goldman.

That's still above the 3% rate of investment-grade corporates, 2% for agency MBS, and 1.5% for Treasurys.

Thus far this year, the best-performing munis sectors have been the junkier ones. Worst-performing: The 10-year AAAs.

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