Asset Allocator's Soapbox: OPM's Ross Henderson

High yield bonds have provided investors with attractive, even exceptional returns since the credit crunch, but there are many reasons for believing that the asset class has much further to run. While many investors fear bonds are vulnerable in a rising interest environment, our belief is that the additional spread offered by high yield provides adequate protection. Central governments appear likely to keep interest rates at low levels for some time, and perhaps longer than many originally envisaged. As a result, in a low interest rate environment, an income return from the high yield se...