The U.S. economy is still likely headed toward a downturn, but investors have options to buy relatively safe fixed income assets that will deliver high yields, according to a top bond expert at one of the country's biggest asset managers. Sara Devereux, the global head of fixed income at Vanguard's Investment Management Group, told CNBC's Bob Pisani in an interview Friday that the U.S. is still likely to fall into a recession in 2024.
In those funds, Vanguard's team has tilted the holdings upward in quality, Dereveux said. That means increasing exposure to assets like Treasurys, agency mortgage-backed securities and investment grade corporate credit. On the other hand, Vanguard has deemphasized commercial real estate, high yield corporate debt and issuers that rely heavily on bank loans, she said.