Credit markets continue to deliver after blip - F&C

Ian Robinson, manager of the high income bond fund at F&C Asset Management – which invests only in investment grade debt – says while yields have consistently fallen since the second half of 2004 and dipped considerably in February this year, this was not the start of a major downturn. The bonds markets has since improved since the earlier blip, says Robinson, as investment grade yields have pulled back 50 basis points to 6%, while European high yield bonds have seen returns rise from 4.5% to 5.5% and B-rated credits (sub-investment grade) are now even higher, having gained 100 basis poi...