Markets

Good, bad and ugly bonds

Tim Haywood, head of fixed income at GAM, thinks there is value in previously unloved bonds. Portguese five-year bonds, for example, have returned over 60 per cent year to date. Gilts, Treasuries and bunds are a concern, however, and investors should beware the fashion for high-yield bonds which could suffer liquidity problems if investors ever decided to withdraw en masse.