Path clear for modest outperformance

Fund manager's comment

General Motors and Ford were downgraded by Standard & Poor's from investment grade to high yield at ...

General Motors and Ford were downgraded by Standard & Poor's from investment grade to high yield at the beginning of May. How many of you remember bonds known as high yield under their former designation of junk? Being downgraded to junk status does tend to focus the mind of the credit investor. In fact, the impending threat of downgrade for GM, which had been well flagged by Standard & Poor's through their numerous teaser trailers, had on the whole already been priced in across the globe. However, Standard & Poor's junking Ford at the same time was certainly unexpected by many fund manage...