In a recession, investors seek safe-haven assets like high-quality bonds, and the increased demand for them lifts their prices. "Bond investors are facing a unique win-win scenario right now," Saperstein said in a memo on Monday. Bond yields are expected by many to continue rising in the months ahead as the Fed continues on its hawkish path. Saperstein's preferred area of the bond market is municipal bonds, which are issued by public entities like cities or states. We're starting to take advantage of this higher-rate environment by 'opting-in' and purchasing longer dated, high-grade municipal bonds within client portfolios," he said.

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