Energy, Basic Materials Bonds Offer Opportunities

Investment grade corporate bonds went on a rollercoaster ride in the first quarter with spreads blowing out and then narrowing. When it was all said and done the group was near where it started, except for a few names in the commodity arena, said Gary Cloud, fixed income portfolio manager for the Hennessy Equity and Income Fund (HEIFX) - Get Report . 'From a total standpoint right now there are opportunities in the energy space, as well as in the materials space,' said Cloud. 'We like National Oilwell Varco (NOV) - Get Report on the oil services side and Rio Tinto (RIO) - Get Report , the large Australian-Anglo miner is another one we feel really good about.' The Hennessy Equity and Income Fund has returned 1.4 percent thus far in 2016, according to Morningstar.