Iggo says European sovereign debt is not worth the risk

European sovereign debt does not compensate investors adequately for the risk they are taking, says Axa Investment Managers' chief investment officer Chris Iggo.

He argues the best opportunities are still in European corporate credit, where there is a much lower chance of default. “Fundamentals are improving and you are getting well paid to own it,” Iggo says. “We feel default risk for investment grade debt, for example, is close to zero for the next couple of years. “Corporations are in pretty good shape and have significantly deleveraged. The traditional corporate did not extend itself too much before the crisis. The recession was concentrated in the financial sector. “In the UK, we are seeing no significant sign of corporate borrowing co...