"So if, say, a classic, US High Yield Bond manager suddenly starts mucking around in CLO tranches, then we’d be pretty wary.
"What we’re working towards, and building the list up at the moment, is a whole range of experts who stay in their lane. Let us do the ‘strategic’ bit, and put together a good portfolio.”
Ben Yearsley, investment director at Fairview, said: “Although the spreads on both high yield and investment grade look tight, I have recently bought a high yield fund.
"The one we bought is very short dated and has a yield of around 8 per cent. At a time when spreads are so tight, in investment grade and in high yield, its a case of which is the least worst, and as we don’t seem to be going in to recession, it looks as though high yield is the better option of the two."
david.thorpe@ft.com
