Omega Advisors head Leon Cooperman on Monday said the bond market may be overvalued and recommended investors steer clear of bonds with interest rates at historically low levels. Omega Advisors, the $9 billion hedge fund he runs, holds a "negative view of fixed income," Cooperman said at the closely followed Ira Sohn investment conference in New York. In addition to reducing overall exposure to bonds, Cooperman advises that investors purchase fixed-income securities with shorter maturities. He also recommended shunning European government bonds, which have been offering negative yields. Negative yields essentially means that the borrower pays the lender to park money.
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