Bond funds screen out ‘big gorilla' trades on liquidity fears

clock

Corporate bond managers have begun to shy away from participating in deals dominated by some of their larger peers as market liquidity continues to contract.

James Foster, manager of the Artemis Strategic Bond fund, said liquidity in the market is “more likely to get worse than better” as central banks begin to scale back asset purchase programmes. Consequently, he has become more cautious when it comes to buying alongside some of the larger names in the bond market. “We have done more recently in terms of trying to avoid the biggest deals, those which tend to be bought by the biggest funds,” Foster said. The investment grade corporate bond market is the greatest concern for the Artemis manager, particularly given elevated valuations an...

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 Investment

Almost half of UK investors using social media for financial advice

Almost half of UK investors using social media for financial advice

Many sources 'unregulated and unverified’

Sorin Dojan
clock 23 June 2025 • 2 min read
Investment Week reveals winners of Fund Manager of the Year Awards 2025

Investment Week reveals winners of Fund Manager of the Year Awards 2025

Celebrating 30th anniversary of Investment Week

Katrina Lloyd
clock 20 June 2025 • 6 min read
Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Piers Hillier and Ed Venner, Royal London Asset Management
clock 20 June 2025 • 4 min read
Trustpilot