Feature

With Mario Draghi extending the ECB's QE programme this month, and investors returning to US high yield following a number of recent sell-offs, managers tell Investment Week which areas of the credit sphere are likely to outperform in the coming months...

'Fearing fear itself'

Just over a month ago, volatility, as measured by the VIX index was around 26%, the highest reading since the Chinese slowdown scare of last August. The FTSE 100 was plunging, reaching its nadir of 5,500 in the morning of 11 February.

Compounding the gloomy outlook among investors is the ratcheting up of event risk. Brexit is looming largest, driving down sterling and threatening a period of sustained instability.

Company attitudes developing

Running a two-speed economy

Country selection is key

When was the last time you woke up in the middle of the night worried you had not bought enough baked beans? Or the last time you saw Unilever on the front page of a tabloid? Probably never.

Asset markets have proved unpredictable and, in some cases, highly irrational since the start of this year. As multi-asset managers, we tread a fine line, writes multi-asset manager Justin Christofel at BlackRock.

Collapsing oil prices, falling equities, over exposure to energy and global stagnation have been the narrative for high yield market bears, writes Kames Capital's Adrian Hull.