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

Partner Insight: Debt, deficits, and market resilience: Is your portfolio prepared?

Partner Insight: Debt, deficits, and market resilience: Is your portfolio prepared?

The world is awash in debt. In the US, government borrowing has surged past 100% of GDP, and the fiscal deficit is at a level typically seen in wartime. Other major economies are in similar situations. So, what does this deluge of debt mean for markets?

Orbis Investments
clock 22 May 2025 • 5 min read
Evelyn Partners launches Index MPS range into IFA market

Evelyn Partners launches Index MPS range into IFA market

Five risk-rated portfolios to help cost-conscious investors

Jenna Brown
clock 20 May 2025 • 1 min read
Three Invesco funds fail to deliver value to investors

Three Invesco funds fail to deliver value to investors

Manager's annual assessment found some poor performance

clock 14 May 2025 • 2 min read