Managers split over bond yields

Record-wide yield spreads divide industry with some managers opting to stick with gilts

Bond managers remain divided over whether to take advantage of record-wide yield spreads of investment grade credit over gilts. Managers such as Schroders' Bob Michele and Tilney's Andrew Ramsbottom believe market volatility is likely to worsen and spreads will widen even further. At the other end of the scale are Hendersons' John Pattullo and Artemis' James Foster, who have both aggressively moved back into the market. Foster has placed 40% of his fund in financial corporate bonds and believes the credit market turmoil has created a golden opportunity for fixed income investors. He...