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Good news stops here for high yield bonds
Philip Millburn, manager of the Kames' High Yield Bond fund, a star pick of our Citywire Selection team, cautions that total returns from high flying corporate 'junk' bonds are set to become a lot more subdued next year.
Milburn, the top high yield bond manager available to UK investors over the last five years, said while the spreads in high yield are at attractive levels the overall yield is at an all-time low.
While he is not anticipating an all-out collapse in the market, the shrewd manager feels most of the 'excess returns' have been made and 'the days of double digit returns are gone'.
As Milburn outlines in this exclusive video with Citywire Selection, why he is also sceptical about the recently launched exchange traded funds in the sector.