Risk assets remain in favour for Nomura Asset Management's Dickie Hodges as global geopolitical "chaos" continues, with high yield, emerging markets and subordinated financials among his preferences.
The fixed income specialist, who runs Nomura's Global Dynamic Bond fund, is taking its risk exposure long across asset classes, as he is braced for the US Federal Reserve and the European Central Bank (ECB) to re-inject liquidity back into the financial system. In a recent fund update, Hodges said: "We continue to hold idiosyncratic risk positions in the high yield segment, alongside some risk-sensitive exposures in the financials sector. "Our convertible bond allocations also carry risk, exhibiting a sensitivity to underlying equity movements of 35% on average." Three yield opport...
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