The safest place to invest in a volatile world?

POPCORN

clock

Christine Johnson, manager of the Old Mutual Corporate Bond fund, explains the factors behind the sudden rush into the high yield space.

Money has been flowing into high yield, which reflects a recognition that the asset class has lot to offer in the current environment. According to EPFR Global, $5.6 billion in net new money came into European high yield this year (to the end of Feb), a rise of nearly 8%. Over the same period, $6.3 billion came into European investment grade corporate bonds, an increase of around 4%. Why the sudden rush? Given the political cliff-hangers seen last year I am not going to rule out total world collapse, but my central scenario is less aggressive. Growth is not wonderful and may slip in...

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

PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read