RLAM's Hussain: There is little fear out there and that is what worries me

Refinancing environment

Investors may have been lulled into a false sense of security despite some "terrible companies" getting away with refinancing, according to Azhar Hussain, head of global high yield at Royal London Asset Management.

The manager of the £1bn Short Duration Global High Yield Bond and £477m Global High Yield Bond funds said the current strong refinancing environment means the quality of some credits has deteriorated. He said: "More bad companies are able to use a get-out-of-jail free card and refinance. As a high yield investor, we are always on the edge of equity risk and bond risk but in some areas we are tipping into an equity profile and taking the risk without getting paid for it. "Broadly speaking, there is a good credit climate for borrowers; the refinancing environment is strong and volatilit...