Odey's Bond: Savage recession priced into US high yield

High yield and investment grade US credit are the cheapest asset classes in the market as they are discounting a "savage recession", said Odey's macro strategist Tim Bond.

Bond has been buying into US credit ahead of the launch this week of his Odey Odyssey global macro hedge fund . The UCITS IV, Dublin-domiciled portfolio is similar to the RADAR fund he developed at BarCap. It invests according to econometric modelling, but with a “common sense overlay”. Turnover in the fund will be higher to give it a more interesting risk profile, the manager said. While running the fund as a paper portfolio, Bond said he has managed to “dodge the worst of the bullets” this year, with the long position in US high yield key to performance. “High yield is discountin...