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Credit opportunities are on the rise, says F&C

As the OECD warns of a potential economic slowdown following the crisis in the subprime market, F&C says opportunities are emerging in credit.

F&C Corporate Bond Fund manager Ian Robinson says while investors need to be cautious, the news is not all bad.

He says: “As the latest OECD report points out we are at a pivotal time and everyone should be nervous. However, we ultimately believe that it is not in the central banks’ interest to allow the current situation to become recessionary in nature and they will react if they have to.”

Robinson says it is currently a buyers’ market for corporate bonds with interesting opportunities to be found in new issuances.

He adds: “The question now is how significant the impact of the subprime crisis will be on the global economy and whether we are really looking at a very different environment than we have experienced over the last two years. This is something we cannot judge at this point in time. But certainly for fund managers, we should expect to find it a lot easier to operate because there is likely to be less competition for attractively priced assets.”

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