Where the Value Is in the Bond Market, Part 2

Editor's Note: This is part two of Brian Reynolds' bond market roundup. Be sure to check out Part 1.

---

As promised, here's a full rundown on bond market sectors and where I see value. Today, I'll focus on the spread, or non-Treasury, sectors. To find out what I think about the long and short ends of the Treasury market, please read Wednesday's column.

Corporates

The next question is what to buy. For me, one of the first places to look is investment-grade corporate bonds. I'm already overweighted there, so I'm concentrating on the intermediate-term area. This means I'm swapping maturity risk for credit risk. With current spread levels having been exceeded only four times in the past 25 years, I think I'm getting paid to take this risk. ...