Interactive Financial Adviser: High Yield Bonds

In the latest Interactive Financial Adviser debate, our panelists from Aberdeen Asset Management, Newscape Capital Group, S&P Capital IQ and T. Rowe Price discussed High Yield Bonds.

Click here to listen to this debate on demand

Click here to register for Interactive Financial Adviser

With default rates at current lows and cash holdings in non-financial companies are at the highest level in more than half a century in the US the outlook for high yield bonds looks very strong. The sector is largely dominated by American issues, so if investors look to the high yield bond sector are they making a call in favour of the US economy, or can they diversify within the sector to non-US issues? With yields from sovereign bonds so low, the attraction a sector which can yield in double figures is clear, but what are the risks advisers need to be aware when allocating to high yield.

High Yield Bonds panel includes:

Stephen Hargreaves - Portfolio Manager on the European High Yield team, Aberdeen Asset Management

Charles Kerr - Portfolio Director, Strategic Bond Fund, Newscape Capital Group

Kate Hollis - Head of Fixed Income and Alternatives - Fund Research, S&P Capital IQ

Mike Della Vedova - Portfolio Manager, European High Yield, T. Rowe Price