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

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read