High-yield class set to lead the market

Fund manager's comment

High-yield markets will not repeat last year's powerful performance. However, they should still be t...

High-yield markets will not repeat last year's powerful performance. However, they should still be the best source of bond returns for UK investors over the next 12 months. In 2003, the JP Morgan UK High Yield Bond Index and the JP Morgan European High Yield Bond Index returned 23.9% and 30.1% respectively. After two dreadful years' performance, investors returned to high-yield markets last year, buoyed by fairly loose fiscal and monetary stances, a more positive economic backdrop and improving company fundamentals. Admittedly, the pace of recovery in high-yield markets has left many bon...