View more on these topics

Safety stays an obsession with quality bonds

Credit Suisse Asset Management says the market&#39s view that many

high-yield bonds will be imminently re-rated is wrong but says

obsession with safety is likely to persist.

Kevin Adams, manager of CSAM&#39s corporate bond monthly income fund,

says that, despite widespread views to the contrary, the market&#39s

fixation with safety will continue as economic fundamentals in the UK

show no sign of improving.

Adams believes quality investment-grade bonds will remain a safe

haven for investors, with the high default risk among lower-grade

bonds outweighing the potential rewards of higher yields.

Although fraud continues to be a problem for fund managers in this

area, he says that a diversified portfolio should limit any damage to


Adams believes there are signs that companies are repairing balance

sheets, reducing debt, capital expenditure and capacity. He says if

the strides taken in this respect in the telecoms sector spread

throughout the corporate sector, then risks to bondholders will fall

and corporate bonds will continue to perform.

Default rates also appear to have peaked, he says, although the

outlook is for a slow fall in corporate bankruptcy. Nevertheless, he

says there is more to performance than investing in investment-grade


He says: “Sticking with quality will not be sufficient to win the

performance game; avoiding the disasters in the corporate bond market

is also likely to continue to be one of the primary determinants of

good performance.”


Catalyst brings together EIS portfolio

Catalyst Investment Group has established a second enterprise investment scheme (EIS) fund that invests in a portfolio of between four and 15 EISs. The fund aims for growth by investing in small and developing companies over a five-year term. With a minimum investment of £3,000, it is designed as an alternative to EIS portfolio management […]

Tax relief but little rate relief for Isa savers – IF

Not one of the top ten paying instant mini-cash Isas launched in 1999 when the savings wrapper came to market remains in the top ten paying accounts today according to new research from Intelligent Finance.Only two managed to last out the first year before slipping out of the top ten the online bank says.IF says […]

BM Solutions offers online sales tools

Specialist lender BM Solutions has launched a range of sales tools on its intermediary online service, BM Solutions Online. The tools include affordability calculators, covering buy-to-let and flexible repayments and are intended to help brokers maximise sales. Personal illustrations are available to reveal bottom line savings for clients and users are guided through the facility […]

Property funds shut until prices go down

Scottish Widows has temporarily shut its property funds to newbusiness because of concerns about the commercial property market.Widows says that the popularity of property as an asset class in thecurrent turbulent stockmarket environment is driving up prices tolevels where it is unwilling to buy.The company says it is being forced to stockpile cash and this […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm