Agency MBS and mortgage REITs offer safe, high-yield income ahead of 2026 geopolitical risks.

Agency mortgage-backed securities (MBS) and mortgage REITs, such as DX and AGNC, are seen as low credit risk investments that typically perform well during market stress, similar to U.S. Treasuries. Historically, agency mREITs have led recoveries during oil-driven recessions and market panics, making them resilient in downturns. Investors are advised to focus on the steady dividends driven by rising net interest spreads rather than short-term book value fluctuations. This strategy aims to provide a sustainable income yield of around 9%, making these assets attractive for income-focused investors facing potential geopolitical and economic uncertainties in 2026.