The latest round of volatility in the bond market may be nerve-wracking, but it can also be a great opportunity, according to Pimco chief investment officer Dan Ivascyn.
Ivascyn is also the portfolio manager of the Morningstar 5-star rated Pimco Income Fund (PIMIX), which has a 5.46% 30-day SEC yield, according to Morningstar .
Bond yields move inversely to prices, so when prices go down, yields go up.
He likes agency mortgage-backed securities, very high quality corporate bonds and some asset-backed securities in very seasoned pools of mortgages.
"For the patient investor, with a two- to three-year type horizon, you will be well rewarded to shift out of cash, [and] lock in some of these yields," Ivascyn said.
Persons:
Dan Ivascyn, Pimco, Ivascyn, He's
Organizations:
SEC