After the Federal Reserve interest break on Wednesday, a fixed-income expert looks at what you should know about bond allocations amid economic uncertainty.

“This is an attractive time to start looking at investment-grade loans,” which can provide “good income,” said Sonal Desai, executive vice president and chief investment officer at Franklin Templeton Fixed Income.

“It’s been a decade and a half that people like your mother or my father, frankly, have had no income from their fixed income,” Desai told CNBC. Summit of financial advisors. “They took the volatility and it didn’t generate any income.”

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Consider high yield bonds

Investors with a greater appetite for risk may also consider high yield bondssaid Desai, which typically pay a larger coupon but have a higher risk of default.

“If you can take the volatility over the next 18 months or so, the high yield offers 8.5%, sometimes close to 9%,” she said.

The Fed's July meeting will be a

While these assets are riskier amid economic uncertainty, Desai believes a potential US recession could be “quite mild.”

“The default is probably going to go up, and that’s why you’re not buying the index,” she said. But investors can lock in “pretty interesting returns” by picking individual corporate bonds.

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