Real value in credit, Invesco tells Forum

Speaking at the 10th annual International Investment London Forum, Aubrey-Johnson said that after unprecedented volatility and poor returns from fixed income assets for several years, spreads are now in uncharted territory. He added: “The widening has been focused on the lower-rated credits. Last year, you were getting 2% extra for investing in European high-yield bonds over government bonds. Now you are getting around 7.5% and some high-yield bonds are trading as high as 12% over government bonds.” He pointed out that although default rates are likely to move out from here, one-fifth of t...