Junk Bonds: Little Fear of Higher Rates

When the Fed makes its move, USAA Investment Management's Matt Freund believes high-yield bonds will feel little impact

The possibility of the Federal Reserve raising interest rates doesn't seem to faze Matt Freund, portfolio manager of USAA High Yield Opportunities Fund (USHYX ). That's because high-yield, more commonly known as junk bonds, tend to outperform other fixed-income assets when rates rise, he says.

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