Aviva Investors' Higham: Spain may be too big to fix

Jane Wallace reports from our recent fixed income event.

Aviva Investors’ Chris Higham believes the situation in Spain will be the next major hurdle facing bond markets. The manager of the Aviva Investors Corporate Bond and Strategic Bond funds said whereas the smaller economies of Portugal and Ireland are recovering, Spain and Italy may be too large to fix. He said: “Spanish unemployment is already at 27%. Will they be able to make the economic adjustments in time before the political will to do so falls apart?” Higham (pictured) believes the euro will stay intact but he foresees volatility will continue, possibly for the next decade, a...