Fixed income investments are making a comeback in 2026, with inflation shocks from COVID-19 becoming a thing of the past. The positive correlation between fixed income and equities has turned negative, benefiting diversified portfolios. Advisors are focusing on quality, with spreads tight between US Treasuries and other assets. Municipal bonds and non-agency mortgages are attractive options, offering high yields. The bond market is anticipating a steepening yield curve, with firms adjusting their duration and allocation strategies accordingly. Diversification and sticking to quality remain key principles in the current market environment.

Read more at Yahoo Finance: Munis, Mortgage-Backed Securities Among Advisors’ Top Picks for 2026