Although a shadow of political risk hovers over Europe, those keen to invest in the region can take advantage of some resilient high yield bonds and relatively cheap stocks, according to Brooks Macdonald head of research Richard Larner.
Eurozone investment grade and government bonds continued to see outflows as inflation expectations rose, according to Bank of America Merrill Lynch research.
Kames Capital’s Phil Milburn has returned to the asset manager as its head of fixed income investment strategy.
Neuberger Berman is to access the US, Europe and emerging markets with a Dublin-domiciled Global High Yield Bond Fund, headed by Patrick Flynn.
The correlation between oil and US high yield markets broke down in July, indicative of a shift in the focus of the sector.
Asset managers believe that the country’s bond defaults are a concern, but stopped short of saying they would spread outside the energy-related sectors.
With the promise of a unique approach to investing in fixed income, Fraser Lundie outlines Hermes’ ambitions to be a global player in more ways than one
Money has poured into high yield bond funds at a rare pace over the past month but is this a sound move based on merit, or a case of return-starved investors clutching at straws?
This week’s head-to-head challenge featuring Victoria Hasler, head of research at Square Mile Investment Consulting and Research and Sarasin & Partners fund of funds manager Lucy Walker shines the spotlight on two high yield funds: Kames High Yield Bond and Baillie Gifford High Yield Bond.
Those who believe that ‘risk-on, risk-off’ is consigned to the past look away now, with record inflows into US high-yield indicating that sentiment has shifted once again to the spicier end of the fixed income spectrum.
Credit markets have already rung the bell for the top of the cycle in a year that was always going to be challenging, said Peter Toogood of the Adviser Centre.
Kames Capital high-yield bond guru Phil Milburn’s leave of absence has been extended until the second half of this year following his continued struggles with post-viral fatigue syndrome.
