The safest place to invest in a volatile world?

POPCORN

clock

Christine Johnson, manager of the Old Mutual Corporate Bond fund, explains the factors behind the sudden rush into the high yield space.

Money has been flowing into high yield, which reflects a recognition that the asset class has lot to offer in the current environment. According to EPFR Global, $5.6 billion in net new money came into European high yield this year (to the end of Feb), a rise of nearly 8%. Over the same period, $6.3 billion came into European investment grade corporate bonds, an increase of around 4%. Why the sudden rush? Given the political cliff-hangers seen last year I am not going to rule out total world collapse, but my central scenario is less aggressive. Growth is not wonderful and may slip in...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read