The Big Question: Are there any opportunities left in high yield?

High Yield opportunities

Is high yield fully valued? Managers from Hermes, Kames, CF Miton, Sanlan, UBP, Mirabaud, Barings, J.P. Morgan, Neuberger Berman, Morningstar, Architas and Franklin Templeton tell Investment Week their views on the asset class

    Fraser Lundie, co-head of credit, Hermes Fund Managers   Security selection vital Traditional fixed income risks have intensified amid tapering by the Federal Reserve. Both duration and convexity risk remain high in much of the credit markets given the impending normalisation of US monetary policy, and the large execution risks associated with this. Secondary market illiquidity - fuelled by regulators' restriction of banks' ability to provide liquidity to a buy side with plenty of capital to invest - may well exacerbate such risks. Security selection is no longer impor...