F&C's Fatima Luis has introduced BP bonds into her £237m Strategic Bond fund, believing the debt was trading at excessively distressed levels.
Corporate bond fund managers have been forced to build high cash positions in their portfolios after new issuance from European companies dried up over the past month.
Asset backed securities (ABS) are presently the most attractive section of the corporate bond market, according to Royal London's Sajiv Vaid.
Scottish Widows Investment Partnership (Swip) launches its Strategic Bond fund on Monday, managed by Roger Webb and Luke Hickmore.
Swip's Graeme Caughey says the group could look to reduce gilt holdings over the next year on inflation concerns.
Investec will rename its Sterling Bond fund under the ‘Strategic' brand next month in a move to more accurately reflect the portfolio's investment objective.
The UK 10-year gilt yield fell below 3.5% yesterday as investors continued to move out of the troubled eurozone.