- "Credit hasn’t looked this good in six years, and high-yield looks especially attractive," says Pimco CIO for Global Credit Mark Kiesel, as junk bonds head for their first annual loss since 2008.
- The bull case: The economy is on a strong footing, junk bonds are yielding the most since 2011, and - outside of commodities - the default rate is still half its historical average.
- "The Fed lifting off will be less of a market event than people think," says Kiesel. "This economic expansion can continue even though the Fed is raising rates."
- ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC