Drew sees unrated debt as key to better performance in corporate bonds sector

Thames River manager believes while fever pitch within peer group may be over, an elongated credit cycle means plenty of opportunities remain

Stephen Drew, co-manager of Thames River Capital’s two recently launched bond funds Global Credit and Credit Select, believes one of the best opportunities in corporate bonds at the moment is in unrated debt. Drew, who employs hedge fund like techniques in his management of the two portfolios, believes while the fever pitch excitement for corporate bonds may be over, there remain plenty of opportunities. With an elongated credit cycle underway, Drew thinks corporate credit markets have a further nine to 12 months before they turn back to a more normal return pattern. With banks shorin...