Double-B high yield bonds below par offer most value, says Hermes

Double-B rated high yield bonds issued in Europe and the US in the last year could be the place to be for investors, according to Fraser Lundie, co-head and senior portfolio manager at Hermes Credit.

  • By Stefanie Linhardt
  • 30 Oct 2013
Of the double-B rated bonds issued in the last 12 months, some 56.4% are trading below par, which Lundie says is an attractive opportunity because it “reduces risk of capital loss, positions investors for future price gains and provides put options to benefit from buyouts, as more companies ...

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