There continues to be a ton of drama surrounding municipal bonds, but it "really depends on the client and there ability to tolerate levels of volatility in the muni market," Dagny Maidman, managing director of private banking USA at Credit Suisse Securities, told CNBC on Tuesday.
"I would still have municipal bonds as part of your portfolio. I'd own some things like MLPs (master limited partnerships). I'd own some senior secured loans, maybe a little high yield, and I would definitely own dividend producing equities," said Maidman.
"We're recommending our clients do not own mutual funds, municipal mutual funds, which is I hate to say it is part of the problem in the muni market, in terms of pricing, has been the redemption from mutual funds," she said, adding, "the market is such a different market then other markets."