Yields on European debt are looking fairly valued

European sub-investment grade paper is offering high yields but the risks appear moderate, according to John Hatherly, head of global analysis at M&G. Hatherly says whereas only 20% of investment grade corporate bonds sensitivity is based on company performance, sub-investment grade corporate bonds (BBB and less rated) are almost completely reliant on company performance and the market, he says. Within the sub-investment grade corporate bonds sector, there are some attractive yields offered in the UK and Europe. He says: "There is always a greater yield with greater risk and we have seen...