Kames' Milburn reveals high yield 'sweet spots' as US elections near

'Clinton win likely to lead to a rate hike'

Kames Capital's Phil Milburn, co-manager of the firms £1.2bn Kames High Yield Bond fund, has named the "sweet spots" he will be targeting over the coming months, as he said the outcome of the US elections will be a key factor for the Federal Reserve rate path.

The manager (pictured) said who wins US presidential elections will prompt whether the Federal Reserve goes ahead with a further rate cut before the end of the year, but said even if there is a hike the path to higher rates will be a slow one. "The key factor for high yield is that rates are neither going up fast nor far," he said. "I expect a continued slow pace of increases, in the absence of any unexpected shocks. The terminal rate in this cycle will be significantly lower than in previous." Citi warns Trump victory could trigger global recession As a result, Milburn said opport...