Contracting spreads have caused spike in high yield

Top performing high-yield managers attribute good results to high-yield convictions

The IMA £ High Yield sector has experienced a strong spike in recent months as spreads began to contract from near the depression levels seen during the height of the financial crisis. Over six months to 21 September, the average fund in the £ High Yield sector returned 41.4%, according to Morningstar. The funds need to invest at least 50% of assets in lower than BBB-rated securities and can include convertibles, preference shares and permanent interest bearing shares. Barrie Whitman’s Threadneedle High Yield Bond is 41% higher over the six-month period. Over one year, the vehicle ...