Man GLG's Veysey: Tighter credit spreads make for challenging times for long-term bond investors

Manager urges caution over current credit cycle

It is a challenging time for longer-term bond investors, according to Man GLG's Craig Veysey, given that credit spreads are tighter than they were at the start of the year.

The manager of the £427m Man GLG Strategic Bond fund has positioned the portfolio with little exposure to sectors that could potentially be left vulnerable to "a significant weakening" in global growth. In addition to tighter credit spreads, Veysey said government bond yields are "significantly lower" than they were at the beginning of 2019, while investment grade bond yields and high-yield bond yields are also "somewhat lower".  He added: "Clearly, your average investment that you make into a corporate bond at this time does not return as much as it might have done at the start of 20...