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.
Now read: Puerto Rico's Bonds Continue To Slump »