Retired PIMCO managing director and portfolio manager Paul McCulley appeared in an interview in the PBS TV program WealthTrack. He talked about Fed policy, market risks, and investment strategy.

Mr. McCulley said in the interview that intermediate-term munis are the best deals in bonds now. From the transcript:

"And actually my favorite sector, notably for the retail investor, is the municipal bond sector right now. It is trading at its cheapest relative valuation to Treasuries in decades, and so if I have to put money to work in the bond market now, and within an investment thesis, intermediate grade municipals beat everything else hands down for the taxable investor."

Watch the full interview below.