M&A risk is just another ingredient for analysis mix

Increased merger and acquisition (M&A) activity across Europe is causing an inversion of risk between investment grade corporate bonds and high yield issuance, Jupiter's corporate bond manager John Hamilton believes. Typically an investor is rewarded with a higher yield for taking on the additional default risk associated with sub-investment grade bonds. However, as companies more associated with investment grade paper, good businesses with solid balance sheets, are currently being targeted for takeover and mergers, event risk in this part of the market has increased. At the same time due...