Expect yields to drift higher in the second half of the year as the Fed retreats from the bond market, but don't be surprised by a spike in volatility as well, said Aaron Izenstark, portfolio manager for the Iron Strategic Income Fund. Izenstark also warned of a bubble in high yield debt because of all the investors that have piled into the sector desperately seeking yield. Finally, Izenstark said convertibles are an overlooked part of the bond market which offer fantastic profit opportunities. Izenstark said convertibles allow investors to get paid to wait for a potential big score, yet require a tremendous amount of research because it is a niche market.

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