Bonds

Leading strategic bond fund managers have cut their aggressive shorts on US treasuries, on the expectation the Federal Reserve may postpone plans to scale down QE if growth and inflation continue to undershoot.

Insight Investment has launched a UCITS version of its Short-Dated High Yield Bond fund, managed by Ulrich Gerhard.

M&G Investments' top performing bond fund manager Richard Woolnough has argued the global economy is in a much healthier place than GDP figures suggest.

Mike Riddell, bond fund manager at M&G, has warned if emerging market debt outflows continue at their current pace or worsen, the effect on the asset class is likely to be "cataclysmic".

Bond fund managers have been returning to emerging market debt in the last few days following the dramatic sell-off in the sector, after a strengthening dollar sent prices spiralling.

Bill Gross, the manager of the world's largest bond fund, has told investors selling treasuries they could be left disappointed if they overestimate the speed with which the Fed will wrap up QE.

Bish Limbu, manager of the Omnis Distribution fund at Octopus Investments, looks at the options for income-hungry investors.

ON BONDS

Standard Life Investments (SLI) has launched a local currency emerging market debt fund to complement its existing hard currency offering.

Hundreds of Co-operative Bank bondholders, who face losing at least 30% of their investments through the lender's debt-to-equity capital-raising proposals, have joined a campaign challenging the bank's plans.