NEW issuance of bonds is likely to be "aggressive" as fund managers find new opportunities in credit markets, according to Adam Mossakowski, UK credit fund manager at F&C.
Mossakowski explained that corporate bonds have been selling off since the beginning of the year over fears of US recession, further collateralized debt obligation/asset-backed security write-downs and the fate and subsequent fallout of monocline insurers. He said: "In February, credit spreads decoupled from equities and continued to sell off. Bonds and equities are beginning to price in increasingly divergent outcomes - the former a US recession, the latter a soft landing. However, corporate bond markets have recently stabilised following rumours of a bank led recapitalisation of Ambac...
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