Hermes’ Lundie: High yield investors in for a nasty surprise

Fraser Lundie, co-head of credit at Hermes Investment Management, discusses in Portfolio Adviser that while all-time low levels of volatility have enticed many credit investors to turn to high yield bonds, these investors could find themselves at risk with the predicted rise in volatility. In order to avoid this, Fraser emphasises the need to actively manage the size of portfolio allocations and avoid complacency.