Hargreaves Lansdown sounds alarm over high yield

Hargreaves Lansdown has removed the £1.7bn Kames High Yield Bond fund managed by Phil Milburn (pictured) from its Wealth 150 list, pointing to concerns over the asset class in general.

High yield bonds have delivered strong returns over the past few years as investors piled into the asset class in search of returns, prompting growing concerns about late-cycle risk and the impact of 'tourist money'. While recent weeks have seen a small reversal in the asset class' fortunes, with yields rising in the US in particular, Hargreaves said today that value remains hard to find. The platform's research team said it is particularly concerned about managers diversifying into European high yield bonds at a time when yields are close to record lows at an average of 4.2%. Lai...