Today you get a lot of credit risk for less reward than can be found in bonds. Admittedly this recommendation might be early as investors chase the better performance of loans, but we would start scaling out of loan funds and back into high yield bonds for the higher risk income segment of fixed income portfolios.

Where investors expect zero risk-free interest rates forever, taking greater investment risk was the only way to protect savings from inflation and to earn a decent level of income…The prospect of normalizing interest rates reduces the attractiveness of “reaching for yield."