Threadneedle's Burgess on the value opportunity in credit

Pockets of value in the corporate bond market have opened up even as markets begin to adjust to the prospect of tighter monetary policy, according to Threadneedle CIO Mark Burgess.

Speaking earlier this month at Threadneedle’s investment conference in Stockholm, Burgess said the group has begun putting money back into investment grade credit following the sharp sell-off seen in June. Burgess and the group’s asset allocation team took money out of the asset class in early May, believing valuations had become stretched. The move paid off when global credit spreads widened on concerns of forthcoming tapering of US quantitative easing. US investment grade credit spreads, for example, widened from 130bps to 150bps in June, according to data from Barclays, while US hi...