Telecoms pose a danger for high yielding bonds

Investors are being encouraged to look at high yield bonds on an industry level, rather than a currency or sectoral level, because telecoms stocks could prove a danger to the market. Stephen Snowden, investment manager at Aegon Asset Management, says it is always prudent to include bonds in a diversified portfolio, even before the equity market goes down. He says: "For investors, to enter this market once the equity market has disappointed is a bit like locking the door once the horse has bolted." As in 2000, high yield bonds had a good start to the year but have begun to drift of...