Risky bonds look attractive

European high yield bonds are looking attractive as their yields are pushed to highs of around 17%, according to Michael Markham, fund manager, fixed interest at Investec Asset Management. Markham said that although the risks associated with this type of asset were greater than with equities, government bonds and investment grade corporate bonds, the yields currently available in this sector are even better than in January 1999, which saw a rush to buy high yield corporate paper. One of the risks in buying this kind of debt, he admitted, is that the risk of default is much higher than ...