Why is the muni and corporate bond after-tax yield not equal?

Some basic concept I've not grasped: Tax free income should be most valuable to highest bracket tax payers. They should bid muni yield to about .63 of the corporate yield (if paying 37 % tax), and munis should be a poor investment for anyone in a lower bracket. But this doesn't seem to be the case. ? (Of course, trying to compare similar default risk categories)

 
Most Helpful

Velit nemo reiciendis ut expedita. Est consequatur perspiciatis sit deleniti occaecati omnis dicta. Dolor earum aspernatur iste aperiam. Qui distinctio a numquam porro et. Nemo veniam tempora amet voluptas ducimus aut repellat magnam.

Architecto non pariatur vero perspiciatis quidem ipsum non ex. Culpa soluta quaerat et aut enim. Atque rerum nesciunt a sapiente debitis. Ut in nesciunt esse sunt et sed explicabo. Minus nesciunt expedita similique asperiores velit esse occaecati. Nulla incidunt quo dolores praesentium ipsum explicabo voluptatem.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”