Bull market threatened by fears of Fed rate rise

Fixed-interest fund managers are watching US employment data in the expectation that rising job leve...

Fixed-interest fund managers are watching US employment data in the expectation that rising job levels could lead to an upward move in interest rates. There are concerns that signs of an overheating US economy could encourage the Federal Reserve to take action to stem demand. New Star head of fixed interest (credit) James Gledhill says: "While profitability is increasing, high-yield bonds will outperform. At the moment most parts of the world have rising GDP. However, bonds are a global market and everybody is looking at the US to gauge when the first rate rise might be." The sector rema...