Event risk is on the rise as levels of default remain low

The UK bond market is looking strange with managers feeling the only way to beat cash at the moment ...

The UK bond market is looking strange with managers feeling the only way to beat cash at the moment is through hunting out stock-specific opportunities in junk. Although sentiment towards debt markets has not changed radically from the initial pessimistic outlook at the start of the year, debt is looking relatively stable, albeit with low and unexciting yields. Theo Zemek, head of fixed interest at New Star Asset Management, is very negative on gilts, holding only a small exposure in her billion pound Fixed Interest fund. With the lowest real yields in a long time, Zemek dislikes the UK ...