Sector analysis: Strategic Bond

Two once-in-a-lifetime events have left strategic bond managers frazzled. They must steer a tricky path to keep yields, capital values and liquidity on track. When Lehman Brothers collapsed, it set off an unprecedented chain of events in fixed income circles.  Global banks pulled down the shutters and cut off finance. Their own bond issues tumbled in value as investors feared they would go bust. For a while bonds looked more like equities, with the risk premiums to match. For Sterling Strategic Bond investors, the events were great for yields, but less so for capital values. Funds too...