The underdog bites back

When fund managers announce the arrival of an exciting, not-to-be-missed market swing, which just happens to be in their specialist area, cynics will rightly raise an eyebrow. The argument that European high yield has reached such a point deserves particular scepticism, given the poor performance of the asset class in the 30 months to September 2002. However, its spectacular performance in the past nine months (up 25% to end of June 2003) is not a brief upswing, but the start of a new stage in the development of this market, one that should see its popularity rise for the foreseeable ...