Bonds

With banks and brokers under pressure to raise capital levels and reduce risk in the aftermath of the credit crisis, many trading activities have been substantially (and permanently) cut back.

Standard Life Investments' head of credit Andrew Sutherland is to retire from the group after a 30-year career.

Bond managers have been steadily increasing the use of credit default swaps (CDS) in their portfolios as liquidity issues which emerged in the corporate bond space last year continue to plague the sector.

Chris Bowie has taken bank exposure to its lowest ever level in his £285m Ignis Corporate Bond fund amid growing fears bondholders will be wiped out if there is another crisis.

Bill Gross, the manager of the world's largest bond fund, said Chancellor George Osborne needs to ditch austerity and 'spend money' if the UK is to emerge from its current economic malaise.

ON BONDS

Liquidity in fixed income is a topic that investors have increasingly focused on since the onset of the credit crisis, and rightly so.

Franklin Templeton Investments has appointed David Zahn to head its European fixed income team following an overhaul of its strategy in this area.

Threadneedle's Michael Poole is to become lead manager on the group's £790m European High Yield Bond fund as Barrie Whitman steps back.

FIXED INCOME