Fears of a rate rise boost interest in European debt

Expectations of an interest rate rise in the UK have led some fund managers to look for value in Eur...

Expectations of an interest rate rise in the UK have led some fund managers to look for value in European corporate and government debt. But the European sector is plagued with uncertainty as recent hints from politicians and officials regarding rate cuts have yet to be borne out. Axa corporate bond fund manager Neil Sutherland says: "The spread on UK corporate bonds has tended to be in a lower range recently. Managers are going to have to be more active in their selection. Previously, being overweight in lower-grade bonds would have been sufficient." Sutherland is looking more towards ov...