Investors should consider high yield and emerging markets bonds because they will ‘outcarry’ the pace of the coming Fed rate hike, said Jim Caron, Fixed Income Managing Director for Morgan Stanley Investment Management. Caron, who manages the Morgan Stanley Global Fixed Income Opportunities Fund, said the first interest rate hike will occur in late 2015 as a result of the recently released weaker than expected labor and wage data. He said low default rates due to the growing economy will continue to make high yield bonds attractive despite the problems in the energy sector. Finally, Caron said emerging market bonds offer value and will continue to perform well as long as the Fed proceeds slowly with its tightening plan.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
