Tax yields investing institutional portfolios are adjusting

Institutional portfolios are adjusting allocations toward high-quality tax-advantaged bonds. Corporate buyback activity has slowed, suggesting more sustainable yield opportunities in REITs with tax-efficient distributions. Market projections signal moderate growth in the real estate sector driven by steady rental income trends. If the previous four steps have been completed, extra savings can be placed into a taxable brokerage account, according to the YouTube video. Whether a financial advisor should recommend a high yield muni bond portfolio can depend upon the client’s individual tax profile and their state of residence. But for clients already holding both investment grade muni bonds or any high-yielding taxable fixed income bonds, it’s worth assessing if a high yield muni bond portfolio could deliver equal or better tax-equivalent income with less credit risk. Tax yields investing in high-yield corporate paper carries elevated risk but can offer compelling returns. Junk bonds yield around 7.5%, but actual after-tax return varies significantly, requiring precise yield-to-call analysis.