High yield is not in bubble territory because the default rate remains low and spreads to Treasuries are not at "all-time tights", said James Fitzpatrick, portfolio manager for the RidgeWorth High Income Fund. Wall Street has been issuing a large quantity of high yield paper to keep up with the strong demand, yet Fitzpatrick said the quality has remained high because the majority of the issuance has been from companies taking advantage of low rates to refinance. Finally, Fitzpatrick said high yield bonds will tighten into an improving economy, and Fed Chief Janet Yellen will only raise rates if the economy gets stronger, so worries about an implosion due to a hawkish Fed are overblown.

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