Spreadbury: Bond markets under more stress than in 2008

Fidelity's star bond fund manager Ian Spreadbury has warned some parts of the bond markets are under more pressure than during the height of the credit crunch.

Spreadbury, running the top performing £748m Fidelity Strategic Bond fund, said the stresses caused by the Greek crisis has left sovereigns more at risk of default than during 2008's crisis. "In some ways the market is under more stress than 2008," he said. "In 2008 financials were bailed out by sovereigns, which were not in too bad a shape, but in doing so sovereigns trashed their own balance sheets. "In future, if growth does not come back, we may see some sovereign defaults." Spreadbury also warned bank spreads are showing similar signs of stress. "Bank spreads in some are...