Bonds are the anchor of an investor's portfolio, but they need to be played defensively, said Jim Keegan, portfolio manager of 5-star rated RidgeWorth Total Return Bond fund.
"We're focused on the industries...that focus on what consumers need, rather than what consumers want," Keegan said.
As such, his fund invests in consumer staples, credit, regulated utilities and pipelines, he said. He also recommends underweighting banks.
Keegan said he hopes the days of the minimum-payment mentality are in the past, and that he expects banks to increase their credit offerings in the near future.
"We have very short memories in this country," he said. "It can be a very profitable business for the banks."
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Disclosure information was not available for Keegan or his company.