Demand increases for high yield but supply is limited

clock

Higher yielding sterling bonds in the UK make up less than 1% of the total sterling bond market, acc...

Higher yielding sterling bonds in the UK make up less than 1% of the total sterling bond market, according to Stephen Snowden, manager of the Aegon UK Extra Income fund. He says the fact that there are only about 30 companies issuing high yield bonds makes it difficult to build a sustainable portfolio that does not invest in overseas or convertible paper, both of which he feels bring equity volatility into a fund. Snowden adds that many funds claiming to be UK bond portfolios rely on overseas, even emerging market bonds. Even so pension funds have been able to take advantage ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Daryl Liew, CIO at REYL Singapore.

REYL's Liew eyes return to overweight positions in Asian quality growth names

'It's a question of timing'

clock 28 June 2022 • 3 min read
Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Transitioning to a new paradigm

Ritu Vohora, Investment Specialist, Capital Markets at T. Rowe Price
clock 23 June 2022 • 2 min read
Industry Voice: Green bonds - a powerful way to take climate action

Industry Voice: Green bonds - a powerful way to take climate action

Did you know that investing in green bonds is one of the most powerful ways to make a climate-positive impact ? Learn why green bond proceeds are putting the planet first.

Amundi ETF
clock 23 June 2022 • 8 min read
Trustpilot