Investors seek safety in IG corps as Bund yields vanish

safe haven
By Richard Metcalf
13 Aug 2014

Investment grade corporate bonds were the only asset class ECM Asset Management gave an increased allocation in its most recent update to its model portfolio, reflecting resilience in the face of geopolitical instability and reduced growth forecasts for eurozone countries.

Co-chief investment officer and portfolio manager Ross Pamphilon said the continued strength of credit market fundamentals and low default rates were factors making high grade credit products attractive.

In contrast, bank capital, subordinated insurance and high yield markets were areas where the firm, which focuses exclusively on fixed income ...

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