Artemis' Foster: Sell-off in US high yield looks overdone

We bond investors are often characterised as a gloomy bunch, fretting over inflation and keeping an anxious eye on central banks. That is, of course, a gross simplification, James Foster, co-manager of the Artemis Monthly Distribution fund.

Since the end of last year, however, the pessimists among us have been in the ascendant. Safe-haven sovereign debt has done well - but most other types of bond have not. That is understandable: worries of a global recession, a growth shock in China, and low oil prices seem to point to deflation. There is a creeping concern that governments and central banks are losing their ability to control events. The insidious rise of populist politicians is adding to those fears. At the same time, however, this bearish mood is so pervasive that it is creating opportunities. While there are risks,...