Despite Carl Icahn's warning that high-yield bonds are "extremely overheated," the high-yield market is not at risk, Pimco's Mark Kiesel said Wednesday.
"The reality is this economic expansion will likely continue for several more years, so with that as a backdrop we don't see fundamentally the high-yield market at risk right now," he said in an interview with CNBC's "Power Lunch."
Earlier in the day, Icahn told CNBC that he felt it was his duty to warn investors of trouble brewing in the market.
"I think the public is walking into a trap again as they did in 2007," the activist investor told CNBC's "Fast Money Halftime Report."
While Kiesel, who is Pimco's chief investment officer for global credit, doesn't foresee a crisis anytime soon, he said the firm is being very conservative and avoiding lower-quality, high-yield bonds.
"Within the high-yield markets, we are favoring those rising stars, those companies who are fundamentally improving," he said. "So yes, you want to be conservative in the credit markets today but there is significant ways to add value through active management."