Mortgage-Backed Bonds Your Best Bet Says Western Asset Manager

Mortgage-backed bonds offer attractive valuations and yields, especially non-Agency securities, said Mark Lindbloom, portfolio manager for the Western Asset Total Return Unconstrained Bond Fund. Lindbloom added that he purchased high-yield bonds after they sold off this summer, and the asset class has now stabilized. He said he expects the 10-year Treasury Note to continue to remain range-bound with a yield below 3% for the foreseeable future and he prefers higher-yielding U.S. Treasuries to many European sovereign bonds. Finally, Lindbloom said the possibility of sharply slower growth is the most worrying factor in the bond market right now.