Bond managers moving back into credit

Heavy gilt positions have generated top returns in recent years but managers are now moving back into corporates as spreads continue to widen

Bond funds benefited from moving into gilts ahead of the credit crunch last year but managers are slowly moving back into investment grade as confidence in money markets returns. Recent actions by the Fed and the Bank of England have boosted the appetite of managers in the UK Corporate Bond sector for investment grade debt once again. John Anderson runs Rensburg's £16m Corporate Bond Trust, an actively managed vehicle free to invest across corporate bonds, gilts and other fixed-interest securities. Anderson took advantage of these flexibilities to make calls on duration and credit qua...