Fixed Income

The Investment Management Association (IMA) is canvassing fund groups on how to counter the "very significant erosion of trust in financial services" amongst consumers, and has proposed introducing a 'statement of principles' for members.

The Bank for International Settlements (BIS) has warned spiking bond yields across the world threaten trillions of dollars in losses for investors and a fresh crisis for banks unless they are braced for the shock.

Hundreds of Co-operative Bank bondholders, who face losing at least 30% of their investments through the lender's debt-to-equity capital-raising proposals, have joined a campaign challenging the bank's plans.

The FTSE 100 dropped sharply on Thursday morning following the wider market sell-off, while gilt yields spiked to their high level in over a year, after Fed chairman Ben Bernanke said QE would be slowed later this year.

SECTOR REPORT

YIELDS

Architas chief investment officer Caspar Rock believes convertible bonds are an overlooked way of reducing volatility in an equity portfolio.

Aviva has introduced the option to add an on-going adviser charge to its new and existing investment bond contracts.

Is cash now the go-to asset? Leading investors are rediscovering its attractions as market valuations reach breaking point and inflation levels drop to historic lows.

SMART MONEY