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Video of the Day: Housing Market Momentum Pushes for Mortgage-Backed Bonds

Following the Fed decision last Thursday, we should expect rates to move most likely right around the holiday season in December, Angel Oak Multi-Strategy Income Fund portfolio manager Brad Friedlander says on TheStreet, calling the next couple of months "a holding pattern."

Brad says now is not the time to be "sucked into" the idea of extending maturities, as his fund focuses on floating rate assets. Non-agency mortgage-backed bonds take up about 40% of his fund, which is up 3% so far this year.

"We're seeing a lot of potential from the housing standpoint," Brad says. "Delinquencies are down considerably, home prices are up. I think this is going to be a prolonged housing cycle."

To pick up these bonds instead of going with Freddie or Frannie will give investors another 2% in yield without pre-payment or duration risk.