GSAM bond team reduces exposure to corporate credit

Goldman Sachs Asset Management's global fixed income team has reduced exposure to high yield bonds this year due to concerns about valuations.

Portfolio manager Sean Reynolds (pictured) shared his team’s approach at Investment Week’s Strategic Bond Focus in February. He said: “With regard to credit, as spreads were tightening in high yield at the end of last year, we were reducing exposure. “We have further trimmed our exposure to corporate credit in 2014, although this is not due to a concern around default or real stress in the market, but more around valuation.” However, the team still expects high yield to deliver a positive return this year, he added, although not to the same level seen in 2013. While recent marke...