fixed income

Old Mutual Asset Managers' bond fund manager Stewart Cowley has warned investors in gilt funds face major headwinds in 2012, after falls in yields to record lows left them with little protection from coupons if prices start to come down.

Madrid-based hedge fund Vega Asset Management has threatened to take legal action against officials negotiating Greece's debt restructuring if its bond losses turn out to be too deep.

Investors showed renewed confidence in Spain today, as a government bond auction saw excessive demand.

CHRISTMAS NAIVETY

Italy has been forced to pay record interest rates in a 10bn euro ($13bn; £9bn) auction of treasury bills.

Scottish Widows Investment Partnership's (SWIP) £1.1bn Sterling Credit Advantage fund, managed by Roger Webb, has been moved into the Specialist sector with immediate effect.

A pub has issued its own £500 bonds in an attempt to raise money.

The world's biggest bond investor Bill Gross has regained his top spot amongst his peers as investors piled back in to riskier assets.

Kames Capital's Phil Milburn said Greece should be forced to leave the euro and Portuguese and Irish defaults pushed through as he outlines his solutions for the eurozone debt crisis.

Stephen Snowden has upped risk on the Kames Investment Grade Bond fund by "aggressively" increasing exposure to banks and topping up high yield on the view the bottom of the market has already been reached.