Wells Fargo Warns of Mispricing of Risk in Municipal Bond Market

The video discusses the current economic strength and its impact on high yield credits, highlighting the Federal Reserve's supportive role. It explores the unique risks in the municipal market, emphasizing project-specific risks. The video also identifies anomalies in high yield funds, using US Steel as an example of risk mispricing. Finally, it compares the tax benefits of municipal securities versus corporate markets, especially for high tax bracket investors.

Why might individual investors prefer tax exempt securities over corporate market options?

What factors are driving the anomalies observed in the high yield market?