NEW YORK (TheStreet) -- While the U.S. stock market continues to make new all-time highs, there are other opportunities around the world and in different assets. According to Michael Freno, investors should open their eyes to the world of corporate bonds. 

Freno, the portfolio manager for the Babson Global Credit Income Opportunities Fund, said he owns plenty of European corporate bonds. Specifically though, he finds secured, senior notes in developed nations like the U.S. and Europe to be the most attractive. 

Freno explains that northern European countries have a more favorable economic environment than those countries in southern Europe. Because of this, he is overweight corporate bonds from the northern countries like Germany and the U.K., and underweight the southern countries. 

However, some corporate bonds, like those from cable and utility companies in France and Italy, are still attractive, he added. 

FXE Chart
CurrencyShares Euro Trust ETF FXE data by YCharts

There's another factor to consider when investing abroad: Currency headwinds. The weakening euro is bad for many U.S. multinational corporations with exposure to Europe. 

But European exporters benefit greatly from a weakening currency, especially those that have exposure to the strengthening U.S. dollar. Freno says his firm hedges out currencies, because they are "trying to capture credit spread as opposed to currency risk."

Investors should also avoid the global retail sector right now, but can consider the energy space, which has been roughed up due to declining oil prices. There will be some great opportunities in this space over the next 12 to 18 months, he concluded.

-- Written by Bret Kenwell 

Follow @BretKenwell

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