Market boom expected for 'synthetic' bonds

Alix Stewart, senior portfolio manager with Gartmore, says the industry is increasingly looking to such instruments to develop additional business and boost performance and investor interest in the sector. ”People still don’t have enough bonds”, she says. ”They are still fixed on the equity culture”. Those involved in fixed income funds have seen business improve in the past few years as investors have been forced by the bear market to rethink the spread of assets in their portfolios. Stewart admits, however, that it gets harder for the sector to maintain interest in bonds when ...