It's not a bond market, but a market of bonds, says Matt Freund, chief investment officer at USAA Mutual Funds. In other words, not all fixed income securities behave the same, and it's important to look at all bond sectors and take a diversified management approach. Right now Freund prefers credit risk to interest-rate risk, which is why he likes so-called "spread-sectors" including corporate bonds, CMBS and especially municipal bonds, despite worries about places like Puerto Rico and Detroit.

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