Kames duo's two key triggers to buy European high yield

Kames Capital's Phil Milburn and Melanie Mitchell are poised to add to European holdings in their High Yield Bond fund but are waiting for two specific catalysts before taking the plunge.

They are retaining their defensive bias within the fund by adding to US high yield at the margin. However, if European authorities come up with an adequate response to the eurozone debt crisis, or the spreads between US and European high yield bonds widen, they would start adding to Europe. Milburn (pictured) said: "Moody's downgrade of Spain to near junk status this week was bad news, but there is a silver lining - it moves us closer to crunch time. In the past the European policy response has been underwhelming but it has always been focused on greater European integration, which is go...