L&G's Hodges: the high yield bond run can't continue, can it?

HIGH YIELD

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Richard Hodges, manager of Legal & General's Dynamic Bond trust, examines whether now is the time to increase allocation to the high yield sector.

We all know that past performance is no indication of future performance – after all, it is written on every financial promotion. Looking out over the next 12 months for high yield bonds, I think it is worth reminding ourselves of that well-worn phrase. Professional money managers and retail investors tend to be motivated by the same goal: maximising returns. So when specific asset classes perform well, there is always a temptation to run with the herd. Now, with the bond markets salivating over the “successes” of quantitative easing, I cannot help remind myself of the booms I have se...

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