With U.S. Treasury yields essentially in the gutter, bond investors searching for yield should turn to the credit markets, where they can earn 4, 5, even 6 percent, Pimco's Mark Kiesel told CNBC on Wednesday.
"Right now ... it's actually a very good investment because fundamentally the U.S. is outperforming," he said in an interview with "Street Signs."
The private sector is generating jobs, companies and stocks are doing well, and there has been enterprise value expansion, he said.
"This we think will lead to credit spread tightening," said Kiesel, Pimco's chief investment officer of global credit.
"The reality is you don't want to take a lot of interest rate risk in developed markets now, you actually want to favor companies and credit risks."