Nuveen’s Saira Malik says these are her top three income ideas right now As bond yields increase, Saira Malik, chief investment officer at Nuveen, identifies high-yield municipal bonds as a compelling opportunity due to their attractive yields and tax benefits. She also favors bank loans, noting their floating interest rates offer protection against inflation uncertainty and attractive yields. Lastly, Malik recommends preferred securities, which blend equity and fixed-income characteristics, offering favorable yields and tax advantages over traditional bonds.

• High-yield municipal bonds offer attractive tax-equivalent yields nearing 10% and good diversification benefits.
• Bank loans, with floating interest rates tied to SOFR, provide a hedge against inflation and yield around 8% for up to three years.
• Preferred securities offer yields above 6% and are generally taxed as qualified dividends, providing a tax advantage over bond interest.
• The strength of the U.S. economy supports solid fundamentals for municipal bonds.
• Bank loans are suitable for navigating inflation uncertainty and offer low correlation to other asset classes.
• Preferred securities are dominated by financial companies, which Malik favors due to lower regulations and higher liquidity.