Corporate bond managers have been positioning their portfolios towards higher yielding stocks in com...
Corporate bond managers have been positioning their portfolios towards higher yielding stocks in companies not at risk of defaulting if leverage buyout activity occurs (LBOs). Simon Surtees, manager of the Gartmore Sterling Corporate Bond fund, has been positioning his fund to be overweight short-end bonds because they are higher yielding than long-dated bonds. He says: "The credit curve is not steep enough and investors are not being rewarded if they invest in long-dated maturities. Short-end bonds will benefit the most when the credit curve steepens as inflation creeps up and rates rise...
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