Kames' Holmes: Why I'd rather own a McLaren than a Ferrari in a hard Brexit

The opportunities in sterling high yield ahead of a messy Brexit

We are often asked if there are opportunities in sterling-denominated high yield bonds. As ever, the answer is nuanced and not black and white, writes Jack Holmes, co-manager of the Kames High Yield Global fund.

So, in the context of what looks to be an increasingly messy Brexit and sustained weakness in sterling (down 11% since the peak in April) we thought it worthwhile to explain our logic in some of our preferred sterling bonds. Indeed, with a global remit there is no shortage of opportunities so why make the case for these issuers? 'Generic' explanation Our view is that sterling-denominated high yield bonds 'generically' are very cheap at present. What do we mean by this? We see a number of examples where bonds issued by the same company, with the same maturity, and same level of pr...