Snowden views subdued growth as positive force for credit markets

Old Mutual's Stephen Snowden says subdued economic growth is a positive driver for credit markets as it forces companies to become more fiscally prudent.

The manager of the £745m Corporate Bond fund says the current environment allows company management teams to keep a tighter rein on their finances. “Between recession and booming growth you have this greyness in the middle which is perfect for credit markets as it provides a degree of control in the boardroom,” he says. “Unlike equity investors, we are not looking for companies to show rapid growth, we just want our money back. And when you compare it to other asset classes, the yield on corporate bonds still looks attractive.” Meanwhile, the manager has added to his holdings in Ll...