Ignis' Bowie: My five key bond trades

MY FIVE KEY BOND TRADES

Chris Bowie, manager of the Ignis Corporate Bond Fund, outlines five key trades in anticipation of near-term pressure for many areas of the corporate bond markets.

A healthy exposure to gilts As a capital preservation play, we have built up a large position in gilts. These are very liquid, with an average maturity of between five and ten years, which will protect us if corporate bond spreads widen. We do have concerns for government debt in the medium to long-term from a real yield perspective, but until we see clear signs of a persistent pick-up in RPI we are comfortable with our gilt position. With the Bank of England continuing to buy gilts, we see a real support behind the market. Stay away from ‘weak' Europe We have less than half the...