Holding short duration, non-public bonds has enabled fund manager Thomas Carney to boost the yield in the Weitz Short-Intermediate Income Fund. Carney says Fed Chair Janet Yellen has made it clear that she will maintain pressure across the yield curve until the economy fully recovers, which is forcing fund managers to extend themselves. He says corporate bond spreads are as tight as they have ever been, nevertheless, history has shown that this tightness can continue for a few more years. Finally, he says demand for corporate bonds remains high as evidenced by the new issues being snapped up.
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