Bonds

Sanlam Private Investments' (SPI) head of fixed income Craig Veysey has bought back into the gilt market, viewing the UK downgrade as a ‘short term' opportunity to add exposure to the asset class.

Old Mutual Global Investors' Stewart Cowley has predicted sterling could fall substantially from here versus the dollar as a result of the UK's credit rating downgrade.

Jim Leaviss, head of retail fixed income at M&G, said the UK is facing the prospect of a US-style fiscal cliff within the next five years.

Yields on UK government debt were climbing early this morning following Moody's decision to downgrade the UK's credit rating to Aa1, but equity investors shrugged off the news to send markets higher.

ON BONDS

Invesco Perpetual's Paul Causer and Paul Read have been boosting exposure to equities, taking the view the strong rally in financial bonds will cool in 2013.

Kames Capital's Phil Milburn is sticking with his underweight to European high yield within his £1.4bn High Yield Bond fund, although it has hurt performance over the past year.

Royal London Asset Management (RLAM) has launched two global high yield funds for head of high yield Azhar Hussain.

Hedge fund managers have been increasing their short positions in sterling amid fears the currency is set to depreciate further as investors flock to the euro.

Schroders has promoted Karl Dasher to head of North America, replacing Jamie Dorrien-Smith who is retiring in July after 19 years of service at the firm.