More from Loomis Sayles' Matt Egan (previous): The challenge for fixed-income investors is most are in funds benchmarked to the Aggregate Bond Index (AGG), which isn't a whole lot more than a glorified mix of Treasurys and MBS - in other words, as rates go, so will the index. The Fed, he says, forces you to look elsewhere. A wonderful interview - any fixed-income fan is throwing money away by not reading it.
An alternative to what may be a fully-milked high yield sector is leveraged loans, says David Schawel. These loans are floating rate, and he expects retail interest in them to pick up should concern about rising interest rates take hold. Invesco's Credit Opportunity Fund (VTA) - trading below NAV - is up 26% YTD while yielding north of 7%.