Nisha Patel

"One market we like is the municipal bond market. Yields are very attractive in the intermediate to long end of the curve." In a "higher for longer" rate environment where inflation is sticky but economic growth is cooling, investors need yield without taking on excessive corporate default risk. Municipal bonds offer tax-advantaged income and historical resilience during economic downturns, making them a superior risk-adjusted alternative to lower-tier corporate credit. LONG. Lock in attractive intermediate-to-long yields in high-quality municipal debt before the Fed eventually pivots to rate cuts. A severe liquidity crisis that causes a broad selloff in all fixed-income assets, temporarily widening municipal spreads.

Investment-grade corporate bond yields have risen 50–60 basis points, and the income profile now looks much better. Stronger balance sheet companies offer attractive yields even without relying on spread compression. The income component provides a good hedge against potential further yield increases.

Corporate debt, particularly short to intermediate maturity, is a fantastic way to add exposure because the main story for fixed income is income, which hasn't been seen in a while. Real yields look compelling, and there's a lot of opportunity in fixed income, especially given a robust economy with a steeper yield curve and volatility in the long end. On the high-yield side, you're not getting as much pickup to take on additional credit risk.

Corporate debt, particularly short to intermediate maturity, is a fantastic way to add exposure because the main story for fixed income is income, which hasn't been seen in a while. Real yields look compelling, and there's a lot of opportunity in fixed income, especially given a robust economy with a steeper yield curve and volatility in the long end. On the high-yield side, you're not getting as much pickup to take on additional credit risk.