Schroders' Isaac: Why I am snapping up Spanish debt

The latest addition to Schroders' bond team has been adding Spanish government bonds across several portfolios in the view Spain is too big to fail.

Gareth Isaac, who joined Schroders from GLG at the end of last year and now runs a range of onshore and offshore bond portfolios for the group, said both Spanish and Italian debt looked attractive following the climb in yields. Isaac, running the newly-launched Schroder Strategic Bond fund, first bought Italian 10-year bonds in November last year, and this week he opened a new position in Spanish 10-year bonds at the margin. In recent weeks the yield on the 10-year Spanish bond has surpassed the 6% mark as investors worried the country could need a bailout, with austerity measures and...