High Yield Attractive as Rates Creep High Says Nuveen's Rodriguez

Fixed income investors should expect single digit returns in 2015 as rates drift higher, said Tony Rodriguez, Co-Head of Fixed Income for Nuveen Asset Management. Rodriguez said high yield bonds are worth owning despite their low yields because the default rate remains low and will likely stay that way. He added that he expects upward pressure on interest rates in the coming months, but the rise will be gradual. Rodriguez suggested that investors own areas of the bond market with low correlations to interest rates. Finally, he said that the dollar will strengthen against foreign currencies, although the Mexican currency looks attractive due to the country's reforms.