By Sam Boughedda
A senior investment executive at T. Rowe Price Group said investors should buy bonds now.
T.Rowe, which manages $1.4 trillion in assets, said bonds are at their "most attractive point" in years.
Arif Hussain, T. Rowe's head of international fixed income and chief investment officer, said bond yields will continue their rise in the medium term, hitting levels that offer attractive income opportunities for knowledgeable investors.
In the firm's midyear market outlook, Husain wrote that over the next several quarters, investors may want to consider adding duration.
He added corporate high yield bonds already may be a buy, and some BB-rated bonds are priced at levels that “historically have proven to be good buying points.”
“The threat of recession is real,” wrote Husain.
Husain believes emerging market bonds denominated in US dollars are especially appealing, and the Fed will continue to tighten until it has forced the federal funds rate into positive territory in after‑inflation terms.