Fidelity sees beyond bond struggles

The firm says the bond arena has shown “significant” volatility in recent weeks as the rise in defaults in US sub-prime mortgages has affected some debt products and markets more generally. However, it says strong economic data and rising consumer confidence in the US indicate the issue remains isolated. It adds after several years of remarkably low volatility and narrowing credit spreads, the market movement is starting to provide investment opportunities for portfolio managers. Ian Spreadbury, portfolio manager of the Fidelity Investment Funds MoneyBuilder Income fund, says he is incre...