Kames' Roberts: New bond instruments could be wiped out if markets fall

Kames Capital's head of fixed income David Roberts has warned new instruments within the fixed income market could be wiped out - losing holders their entire investment - if markets turn south.

The bond expert - one of the most experienced fixed income investors in the country who has managed funds for the last decade - questioned valuations on some of the hybrid debt in the market and said any unforeseen event could cause many instruments to collapse. "Valuations across most markets seem expensive and closely resemble the 2008/9 environment. From this perspective, the market appears to be meandering along like the crisis never happened and at current levels, if there is an unknown event prices could collapse expeditiously," he said. He is particularly concerned about new in...