Munis, Mortgage-Backed Securities Among Advisors’ Top Picks for 2026

Municipal bonds provided elevated returns in 2025, and they are still a good idea for high-net-worth clients, Schaefer said. He’s encouraging clients in the top two tax brackets to extend maturities to the longer end of municipal bonds. Yields continue to rival the long-term equity returns at around 6% to 7%, which are historically high. “A lot of that market will depend on supply and demand,” Schaefer said. “Last year was a very high-supply year; this year could be better. If that’s true, then we could get ...