The very nature of being a high yield fund manager means operating in a world of uncertainty and market volatility. One such manager, Baillie Gifford’s Donald Phillips, does not see this ending anytime soon and describes an investment process that means he avoids those companies “that do not deserve to be there”, issuing debt with such low interest rates.
Any uncertainty brings with it opportunity, with Phillips essentially asking whether, given everything in the market around it: ‘Can a company effectively manages its balance sheet?’.
