Strong demand for sterling high yields

By Stephen Snowden, portfolio manager on the fixed income desk at Aegon Despite rising yields in...

By Stephen Snowden, portfolio manager on the fixed income desk at Aegon Despite rising yields in the gilt market, corporate bonds flourished in the final months of 2002. All sectors experienced some degree of spread tightening against the government benchmark. Perhaps surprisingly, the star performer was the sterling high yield market, ahead by 5.7%. However, that was against a 10% fall in the third quarter. And, over the year as a whole, the sterling high yield market has returned a woeful -1.5%. Things could be worse ' and in continental Europe they certainly have been. The euro...