Credit risk

Favouring credit risk over interest rate risk

Opportunity in high yield laggards

We expect the Federal Reserve to maintain its gradual tightening as the US economy extends its growth phase, with short-term rates likely to rise at least three more times to reach 2.5% by next year.

Despite Europe's proximity to the UK, euro credit has been the least volatile of the three - a fact largely explained by the European Central Bank's (ECB) well-received corporate bond purchase programme, first announced in March which has directly supported...

With Mario Draghi extending the ECB's QE programme this month, and investors returning to US high yield following a number of recent sell-offs, managers tell Investment Week which areas of the credit sphere are likely to outperform in the coming months...

Running a two-speed economy

CORPORATE BONDS

Current protection for bank bondholders is likely to be abolished by regulators as part of reforms to the financial sector, M&G warns.

Energy bonds lead corporate debt returns this month after receiving a boost from BP temporarily sealing the leaking Macondo oil well.