Article written in The Independent by Stephen Spurdon. Charteris CEO Ian Williams is interviewed alongside peers on the topic of the fixed income market.
We have been quite worried about these funds for a while,” he says. “lf any of our clients insist on buying corporate bonds we say do not buy a fund. They think they are spreading the risk. but this is like someone going into a butcher and buying sausages.
“With sausages you don’t really know what you are buying because it is a mass of meat held together by skin, but with a steak you can see what you are buying. A lot of bonds may have a good yield, but they are relatively illiquid because of the nature of the company who issued them. This can make them difficult or impossible to sell in a bear market.”
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