Finding income in a low-yield environment is currently a tougher task than dealing with interest rate risk, says Michael Fredericks, portfolio manager for the BlackRock Multi-Asset Income Fund. He does see higher yields ahead, but for now is more focused on locating yield than guarding against rising rates. Fredericks owns high yield bonds in his fund, but prefers higher quality issues to keep default risk low. Fredericks is also selling calls against high quality stocks to generate cash.

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