What impact has the Cyprus crisis had on credit?

The situation in Cyprus could have a far more negative impact on the credit market than it has so far, Kames Capital's Melanie Mitchell has said.

Mitchell, co-manager of the group's £1.5bn High Yield Bond fund with Phil Milburn, said the biggest surprise this week was the muted reaction of the credit markets to the news of Cyprus' financial collapse. "I am a bit bemused the reaction was so muted, but maybe people are still subscribing value to the Draghi put and hoping Europe will find a way out," she said. "I would have thought European banks would feel more nervous about runs on their deposits, but the fact the market has been more solid makes me feel even more comfortable with my defensive positioning." Mitchell avoids bo...