Lombard Odier IM's Kevin Corrigan explores opportunities in the 'crossover' credit zone - a lesser-loved group of corporate bonds rated BBB and BB - which sit either side of the divide between investment grade and high yield bonds.
The UK may have one of the highest dividend yields globally with the spread above bonds near record highs, but Blake Hutchins, portfolio manager on the Investec UK Quality Equity Income fund, asks if this could soon be under threat.
Investors have plenty of reasons to be pessimistic and fearful of the corporate credit markets today, but there are bright spots as some energy company fundamentals are downgraded to junk*.
Price falls again by 3.5%
First move to end oil glut
Third consecutive month of increases
Since the start of the year, the market has become exceptionally troubled by the price of oil. Although a falling oil price has historically been seen as a good thing, the severity of the decline has left many wondering about the possible repercussions....
Equities already entered a bear market