There's No Bond Bubble: DoubleLine’s Baha

The bond bubble doesn't exist, Bonnie Baha of DoubleLine Capital said Thursday.

"The best play is to be selective and be cautious," she said. "Look, we are going into a bond-picker's market."

Baha also noted that U.S. Treasury bonds were not overvalued relative to other fixed-income assets.

On CNBC's "Fast Money," Baha was asked whether she thought stocks were overbought.

"I would say getting awfully close," she said.

Baha, head of Global Developed Credit Group, cited DoubleLine founder Jeff Gundlach's favorable assessment of the 10-year Treasury bond with a yield around 2 percent.

(Read More: Apple 'A Broken Company': Jeff Gundlach)

"Last year, we would say buy anything rated triple-C," she added, noting that junk bonds were yielding 3 to 4 percent.

"I would not say avoid the market completely, but be careful," Baha said.

Trader disclosure: On Jan. 31, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long AAPL FEB 455 PUTS; Joe Terranova is long GOOG FEB 750 PUTS; Joe Terranova is long NFLX FEB 60 PUTS; Jon Najarian is long FB; Jon Najarian is long QCOM CALLS; Jon Najarian is long LVS CALLS; Jon Najarian is long ANN; Jon Najarian is long ANN CALLS; Jon Najarian is long JCP CALLS; Stephen Weiss is long QCOM; Stephen Weiss is long RIMM; Stephen Weiss is long AIG; Stephen Weiss is long AAPL CALLS; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long SBUX; Stephanie Link is long OXY;

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