View more on these topics

There is no alternative to bonds, says Dennehy

Dennehy Weller managing director Brian Dennehy says investors are piling into bonds as they face Hobson’s Choice.

He says the big difference between the bond spree and the dotcom bubble is that investors are not “euphorically” charging into corporate bonds as they did with tech. “In contrast, the buying is because investors are being cautious, sensing Hobson’s Choice,” he says.

Dennehy does not believe bond valuations point to a bubble. He says: “Current yields imply 40 per cent of all investment-grade bonds will go bust over the next five years, which is silly. Even if you exclude financials, the implied default rate is 15-20 per cent, compared with a historic peak in the UK of 4 per cent.”

Hargreaves Lansdown investment manager Ben Yearsley says: “Lots of people are saying you should have bonds. The prices are low, indicating there is no asset bubble. If you are seeking income, there is a case for Hobson’s Choice to a degree but you can go elsewhere for income, depending on the risk you want to take.”

Recommended

Annual Kickout Plan from Keydata

Keydata has launched its first five-year Annual Kickout Plan, which offers investors the choice of early maturity at each plan anniversary, with a rising bonus facility.

New Star underperformers get new managers

Investors in the underperforming New Star Higher Income and Sterling Bond funds can expect changes to the portfolios, after manager changes last week.Following the completion of the mer­ger of Henderson and New Star, Toby Thompson manager of Higher Income and Phil Roantree, manager of Sterling Bond, will not move to Henderson. In Thompson’s place steps […]

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com