BWD Rensburg Ltd. is selectively buying new triple-A rated corporate issues. John Anderson, a Leeds-based portfolio manager of £21 million in gilts and corporates, says he has been putting new money to work in new issues from the European Investment Bank, the Inter-American Development Bank and the World Bank. Anderson buys bonds with a minimum maturity of five years, because of the fund's investment mandate. BWD Rensburg manages £300 million in fixed-income assets.
Lately, he has been studying the yield differential between different areas of the curve. And, though he has been resistant to buying towards the shorter end, he is considering putting any new cash toward the shorter end as a rate cut from the Bank of England becomes more evident. Going forward, Anderson says he will look at new issuance on a case-by-case basis.
Anderson is also considering buying Enterprise Inns' whole business securitization, but did not say what would be the ultimate trigger to buy. "I have the option to do securitized paper. There are stories about lots of other issuers coming, but none of them really caught my eye. There will be plenty of issuance coming along and I can pick and choose," he says. The firm uses the FT All-Gilt index total return index as its benchmark.
