Not All Bonds Are Created Equal: Pro

Global bonds offer an alternative to low interest rates in U.S. Treasuries, Legg Mason's Steve Smith said Thursday.

Bond interest rates upward of 3¾ percent from Mexico, Brazil and India make emerging markets an attractive place to park money while Federal Reserve Chair Ben Bernanke continues quantitative easing, Smith added.

"So, when you look around the world, people almost think, 'Wow, everything's like it is here in the U.S.,' but that's just not true," he said.

On CNBC's "Fast Money," Smith said that he expected interest rates on U.S. Treasuries to rise.

(Read More: REITs Roaring on Rising Rates: Pro)

"Real estate problems are over," he said. "The economy looks like it's moving ahead. And we just keep thinking that what's going to happen is that interest rates are going to go up. We're just in an unnatural situation where you have Treasury bills at basically zero."

(Read More: 4 Stocks to Weather Rising Rates)

Smith, who has $39 billion in assets under management, also said that another idea to weather the low-interest-rate climate was to reduce durations.

"We are worried about what happens if the central bank Chairman Bernanke whispers the word 'normalization.' It's going to sound very benign, but interest rates are going to go up," he added.

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Trader disclosure: On June 13, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long S CSS; Jon Najarian is short GLD PUTS; Jon Najarian is long WMT; Jon Najarian is long LEN; Jon Najarian is long BHI; Jon Najarian is long HAL; Jon Najarian is long FNSR; Jon Najarian is long INTC; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Joe Terranova is long VRTS; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long AAPL; Joe Terranova is long CRUDE OIL FUTURES; Josh Brown is long AAPL; Josh Brown is long XLU; Josh Brown is long LULU; Josh Brown is long DXJ.