Bowie: Is long/short the answer to credit liquidity issues?

Ignis's Chris Bowie has said his newly launched Absolute Return Credit fund is positioned to cope with illiquid corporate bond markets and the potential for a price correction.

The head of credit portfolio management, who also runs the £270m Corporate Bond fund, said there are headwinds ahead for traditional long only credit: "Following a strong and protracted bull market for credit I believe we are now facing a prolonged period of volatility, minimal economic growth in the near term and a possible correction for credit markets in the not too distant future. "In addition, low levels of issuance and an increase in debt repayment coupled with capital constraints at investment banks have contributed to a large fall in liquidity. This is placing a significant const...