Alliance Trust's Rod Davidson has launched his new Monthly Income Bond fund with the credit allocation in defensive names.
Billionaire investor George Soros says Germany is the "main protagonist" in the euro's crisis.
Economic sentiment in Germany slid last week following signs the recovery is slowing, according to the Centre for European Economic Research (ZEW) in Mannheim.
The spread on Spanish government bonds over German bunds reached an all-time high today on continued economic concerns for the Mediterranean country.
Fears over Spain escalated yesterday as investors sold off government bonds on warnings of funding problems for the country's companies and banks.