Investing: What a top bond pro is doing now

Managing more than $1.5 trillion, mainly in fixed-income investments, Pimco carries a big stick in the bond world. Daniel Ivascyn, chief investment officer at Pimco, doesn't wield that stick on his own. But as the head of fixed-income strategies, he oversees funds involved in everything from Treasuries to emerging-markets bonds, including more than $85 billion in Pimco Income (symbol PONDX), a member of the Kiplinger 25, the list of our favorite no-load mutual funds.

Many investors are bracing for a spike in interest rates, which would push down bond prices. But Ivascyn says rates are likely to remain in a narrow range near current levels, partly because the economy isn't...