(Bloomberg) -- Pacific Investment Management Co., the world’s largest bond manager, expects speculative-grade bond investors to largely collect the coupons paid by the debt in 2014 after an average 20% gain in the last five years.

Sectors that may outperform this year include lower-priced BB to B rated debt and high-yield health-care providers given their “non-cyclical profile and the aging population demographics in developed markets,” portfolio managers Andrew Jessop and Hozef Arif wrote today on the company’s website. The market will see increased supply from so-called fallen angels, or companies that have been downgraded from investment grade.

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