Managers cite big liquidity risk within corporate bonds

Managers are warning over liquidity risk within the corporate bond market given how popular the sect...

Managers are warning over liquidity risk within the corporate bond market given how popular the sector has been since the start of 2009. Peter Allwright, Threadneedle's Global Bond fund manager, says he is avoiding the corporate bond market because he feels the ability to sell the bonds will diminish as the market becomes swamped with investors. "At the start of year you had all hysteria about corporate bonds. But the guys who own these bonds will not be able to sell them," he says. Allwright's fund, which is currently ranked in fifth of 47th place within the Global Bond sector on a o...