What impact has the Cyprus crisis had on credit?

Anna Fedorova
clock

The situation in Cyprus could have a far more negative impact on the credit market than it has so far, Kames Capital's Melanie Mitchell has said.

Mitchell, co-manager of the group's £1.5bn High Yield Bond fund with Phil Milburn, said the biggest surprise this week was the muted reaction of the credit markets to the news of Cyprus' financial collapse. "I am a bit bemused the reaction was so muted, but maybe people are still subscribing value to the Draghi put and hoping Europe will find a way out," she said. "I would have thought European banks would feel more nervous about runs on their deposits, but the fact the market has been more solid makes me feel even more comfortable with my defensive positioning." Mitchell avoids bo...

To continue reading this article...

Join Investment Week for free

  • 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 Bonds

Global ESG backlash has not eroded demand for UK green bonds

Global ESG backlash has not eroded demand for UK green bonds

This year's auctions oversubscribed

Sorin Dojan
clock 03 July 2025 • 4 min read
Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Responding to ‘increased investor demand’

Eve Maddock-Jones
clock 25 June 2025 • 2 min read
Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Assets in fixed income up 11%

Patrick Brusnahan
clock 19 June 2025 • 3 min read
Trustpilot