Weak growth picture means higher-rated names safer bet

Believing credit markets are likely to weaken, Bryn Jones, manager of the Rathbone Ethical Bond fund...

Believing credit markets are likely to weaken, Bryn Jones, manager of the Rathbone Ethical Bond fund, feels high-rated names are a safer investment bet at the moment. Having bought into AAA-rated companies, particularly securitised deals, he advises avoiding longer-dated, lower rated credit as it is more sensitive to any weakening trends. Companies not subject to leveraged buyouts, such as building societies and banks, currently make good investments, he says, particularly considering the position of the credit cycle. "Slowing economic growth, worries about inflation and rising US intere...