M&G favours junk bonds over stocks

M&G has come out in agreement with Warren Buffet's strategy of shunning stocks in favour of junk bonds. But to make strong gains, investors need to be able to sort the winners from the losers through in-depth credit analysis, according to Simon Pilcher, chief executive for fixed income at the group. The asset class has performed strongly over the past nine months as investors have foreseen default rates peaking but high yield is also growing in popularity as investors see it as an important portfolio diversification tool, he said. 'Last year can be divided into two parts in terms of p...