Yield hungry equity fund managers are finding more to go for among stocks than corporate bonds. Brit...
Yield hungry equity fund managers are finding more to go for among stocks than corporate bonds. British American Tobacco (BAT) paper yields 8.6% while Orange and Atlantic Telecom bonds offer 8%, an attractive proposition compared with the 2.3% yield on the All Share. By contrast Scottish Power and the Halifax paper yield 7.4% and 13% respectively and presumably have better prospects for capital appreciation if and when the enthusiasm for new economy stocks dies down. Carl Stick, manager of Rathbone Income unit trust, holds no corporate bonds and has only one preference share preferring t...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes