Hermes' Lundie: The two powers that could 'unhinge the market'

What are the manager's key concerns?

Fraser Lundie, co-head of credit at Hermes Investment Management, has named the oil price and the US treasury yield curve as this year's key indicators to watch as they have the potential to "roll over markets".

The manager of the £233m Hermes Global High Yield Bond fund said both of these issues are huge drivers of global credit and therefore the areas he is most worried about. He said: "Oil is one of the few things that has the power to roll over markets this year. Technicals are so fiercely positive with the ECB and other central banks buying to the extent at which they are buying. Something big needs to roll that over and the only thing that can do that is oil. If it stays in the $30s or keeps goes lower, the US high yield market will be seriously tested. "The distressed part of the tail ...