Defensive stance brings Investec High Income through crunch

Managers have moved steadily more defensive since 2006, cutting high-yield position to a low of 55% in February to buy investment grade and gilts

Investec's Chris O'Hare and Kieran Roane are among many bond managers believing current economic conditions are creating buying opportunities in credit markets. The Monthly High Income managers said in light of market turmoil and the Government rescue package, investment grade and some parts of the high-yield market are looking very cheap. Roane said: "A lot of people are worried about defaults and while we are expecting these to increase, we think we will be compensated. There are some very attractive returns to be made." O'Hare and Roane have been co-managing the fund since January ...