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.

Read more about GAM Star Credit Opportunities fund

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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