Henderson Global Investors has been buying into investment grade bonds, seeing them as cheap relative...
Henderson Global Investors has been buying into investment grade bonds, seeing them as cheap relative to risk. According to Deutsche Bank research, using data on cumulative five year default rates going back to 1970, the market has estimated an 8% default rate on AAA-rated securities whereas the average rate was 0.1% and the worst five year period saw default rates of 2.4%. For John Pattullo, director of fixed credit at the group, this has been a key reason to go overweight investment grade bonds. Within this sector he has been particularly keen on financials, attracted by the risk/rew...
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