M&G's Lord: My focus is firmly on US credit after 'staggering' gilt rally

Low corporate bonds breakevens

Ben Lord, one of M&G's Bond Vigilantes, said he is focusing his attention on US corporate bonds after the rally seen in treasuries, gilts and UK corporate issues.

Writing on the Bond Vigilantes blog, M&G fixed income manager Ben Lord (pictured) said gilts, UK corporate bonds and treasuries have soared following the actions of central banks, making them less attractive. "With the Bank of England buying gilts and soon to start buying corporate bonds, with the aim of loosening financial conditions and providing a stimulus to the economy as we work through the uncertain Brexit process and outcome, low corporate bond breakevens are to be expected. "But with Treasury yields at extreme high levels out of gilts, and with the Fed not buying government b...