High yield set to be volatilebutfruitful

It could be argued that the first two months of 2002 have not been kind to high-yield corporate bond managers. The interest rate cycle in both the UK and the US has turned, with short-term rates forecast to be higher by the end of the year. Recent inflation data suggests prices are rising. Added to these supposed macroeconomic woes, fourth-quarter results from some companies have fallen short of expectations and downgrades have consequently continued apace. Most disappointing, however, has been supposed better-quality issuers such as Energis failing to live up to expectations and consequ...