Darius McDermott: Are high risk bonds an opportunity?

'There's an element of fear'

clock • 4 min read

In the current market climate, argues Darius McDermott, high risk bonds could represent good value despite the risks associated with the assets...

In April we were talking about corporate bonds being the opportunity of the century as markets looked to recalibrate because of the impact of Covid-19. Since then, credit markets have recovered nicely from their lows, so is the opportunity still available to investors? With the trinity of central banks (Bank of England, European Central Bank, and US Federal Reserve) still supporting the market by buying both higher quality and some weaker high yield borrowers, and most companies looking to shore-up their balance sheets rather than pay money back to shareholders in the form of dividends, ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read