Managers act on emerging value in credit markets

Top-performing bond managers have been taking on some additional risk in recent months, moving away from ultra-cautious stance taken during the crunch

Corporate bond managers have been unwinding defensive positions to take advantage of value deemed to be emerging in the credit markets. Managers at the top of the UK Corporate Bond sector said they placed portfolios into safer assets ahead of the credit crunch and this has served them well over the past year. However, they now believe investors will be compensated for taking on more risk despite the credit crunch being far from over. John Stopford, manager of Investec Sterling Bond, said it has been a challenging year: "The credit crunch became an issue last August and we saw credit s...