[video] Quick Take: Add Value With Munis, Mortgages
NEW YORK (TheStreet) -- Investors can still find value in the bond market, according to Jim Cahill, president of Drexel Hamilton.
He told TheStreet's Joe Deaux that the U.S. government didn't really have a choice but to come to a resolution, simply because there are so many foreign bondholders.
Cahill added the Federal Reserve will have to continue printing money, but at some point will have to pay the price. Eventually interest rates will go higher and everyone will have to be ready for that, he said.
Regarding bonds, he specifically likes municipal bonds because of the value on a relative basis, calling them "very favorable." This includes taxable municipal bonds. Cahill also suggested that commercial mortgaged-backed securities (MBS) look decent right now and could offer an attractive entry at some point.Regarding the firm's mission to hire veterans, he said that service-disabled veterans are the only ones paid a salary. At first, there were only seven employees at the company. Now there are 72, with over half of them being combat veterans, 15 of whom were severely wounded. "We need to do more," he concluded about the hiring of veterans on Wall Street. Regarding bonds, he said opportunities come and go and investors just need to keep an eye out for them. Follow @BretKenwell
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