Invesco Perpetual's Read: Liquidity still key for bond investors

Invesco Perpetual's Paul Read is maintaining high liquidity levels across all the group's bond funds at the start of this year as "difficult" markets persist.

The co-manager of the group's top performing £5.6bn Corporate Bond fund, as well as a number of other strategies, said he is concerned about the lack of opportunities across the fixed income universe, and as such he is pursuing a defensive strategy. This translates into high weightings to cash and other liquid assets such as government bonds. "We are holding significant liquidity across all of our strategies," he said. "When we say liquidity, we mean cash, short-dated securities and high quality, highly liquid government bonds. This lowers our credit and duration risk, but it also giv...