Ben Pakenham, manager of the Aberdeen High Yield Bond fund, takes a closer look behind the headlines at what is happening in the high yield bond sector.
Central banks have implemented unprecedented easing policies since the onset of the 2008 financial crisis with the aim of spurring economic growth and boosting risk appetite. The influx of cheap capital has lowered investment grade bond yields to below 3% and forced investors to look further afield for higher yielding assets to meet investment objectives. High yield has been a popular choice, with 2012 investor inflows into US high yield and European high yield reaching US$23bn and €8bn, respectively. The strong technical backdrop has continued in 2013, marked by record weekly flows i...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
