Kames bond managers add to long-dated bonds as yields rise

Kames Capital's fixed income specialists David Roberts and Philip Milburn are seeing value return to long-dated bonds following the recent spike in bond yields.

Roberts (pictured), who heads up the fixed income team at Kames, said: "Five to 15-year bonds have outperformed over the last few months. "We are happy to buy longer-dated investment grade bonds and have been reducing our interest rate hedges as the absolute level of yields rises. The higher yields go, the more likely we are to add to interest rate risk." Milburn added the middle part of the yield curve has absorbed much of the recent sell-off in bonds, and the team has been avoiding this part of the curve in favour of longer- and shorter-dated bonds. The managers have also slightl...