With interest rates reductions seemingly on the horizon and the full extent of the credit crunch not yet known, one of the hottest 2008 investor debates surrounds fixed income.
As uncertainty continues to encircle the sector, where do the experts expect to find fixed income opportunities? F&C Strategic Bond fund manager Fatima Luis expects investment grade financials to offer the greatest prospects in the New Year, despite the fact the credit crisis problems are “far from over”. "As banks need to recapitalise they will be willing to come to the bond markets at significant discounts and non-financials will find they need to do the same,” she says. “Likewise, there are also opportunities to acquire the debt being fire-sold from collapsed hedge funds and SIVs in t...
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