Bill Gross sees one or two Fed rate hikes in 2016: Barron's

(Reuters) - Bond manager Bill Gross predicts that the U.S. Federal Reserve will raise interest rates once or twice in 2016, according to an interview in Barron's.

Gross, who is the manager of the Janus Global Unconstrained Bond Fund , told Barron's that he does not expect U.S. Treasury yields, which are currently around 1.7 percent, to change dramatically this year.

The 71-year-old portfolio manager said he sees investment opportunities in merger arbitrage situations, such as Berkshire Hathaway's acquisition of Precision Castparts last year or Anheuser Busch InBev's (NYSE: ABI) planned acquisition of rival SABMiller (NYSE: SAB).

Additionally, Gross said he likes closed-end funds such as the Nuveen Preferred Income Opportunities Fund (NYSE: JPC) and the Duff & Phelps Global Utility Income Fund (NYSE: DPG).

(Reporting By Jessica Toonkel; Editing by Alan Crosby)

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