junk bonds

The European Central Bank (ECB) has restricted Greece's access to cheap liquidity on concerns its new government is not committed to existing bailout pledges.

Standard & Poor's has cut Spain's credit rating by two notches to one level above junk status, warning the government's policy options are limited as economic recession deepens.

Moody's has cut Italy's credit rating by two notches to Baa2 as the euro area's third biggest economy faces higher funding costs and contagion risk from Greece and Spain.

Steven Logan, the co-manager of SWIP's £1.3bn High Yield Bond fund, has picked five high yield bonds to give investors stability in an uncertain environment.