FYI: While the rest of the bond market continues to gorge on high yield credit, the head of Canada’s biggest bond fund has had her fill.
Dagmara Fijalkowski, who runs C$50 billion ($38 billion) in investments as head of global fixed income and currencies at Royal Bank of Canada’s RBC Global Asset Management, says the extra yield on offer simply isn’t worth the risk. Allocation to high yield in the RBC Bond Fund, the country’s largest bond mutual fund with about C$18 billion in assets, has been reduced to about 3 percent from 6 percent a year ago, she said.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-02-28/high-yield-rally-just-too-risky-for-canada-s-biggest-bond-fund
