Reuters – Threadneedle is staying defensive in its high yield bond fund, despite the spring rally in the sector, betting that weak growth will hinder over-leveraged companies over the next few years, impacting the default rate.
"The focus should be on company fundamentals now," said Barrie Whitman, head of high yield at Threadneedle. "We think growth will be anaemic for the foreseeable future, which does a lot of damage to over-leveraged companies."
