55. Why bank bonds could the bargain of the century

All eyes have been on global stock markets in recent weeks, but bond markets have had a turbulent time too. In this podcast, Jeremy Smouha, who is on the investment board of GAM Star Credit Opportunities fund, tells us what has been happening in the world of fixed income, explains why he thinks bank bonds are the bargain of the century and tells us why some of the world’s strongest companies are today producing extremely high yields.
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GAM Star Credit Opportunities fund invests in the ‘junior debt’ of investment grade companies. This allows the fund to generate a good income, whilst still keeping a high-quality portfolio. It tends to be heavily invested in the debt of financial companies, as this is where the team believes the best opportunities often lie. The managers’ look for bonds they can buy and hold and the fund’s higher yield reduces its interest rate sensitivity.

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