2014 - A 'Carry Friendly' Year?

“We expect 2014 to be a ‘carry-friendly’ year for credit markets, featuring better growth in developed markets with inflation remaining low.”
This is the view of Klaus Blaabjerg, head of Sparinvest’s Value Bonds team who believes that bond spreads are roughly at fair value and that rising interest rates are not the main risk factor in credit markets. In his latest ‘Letter to Shareholders’, Blaabjerg identifies both the relative value opportunities in the market and the factors that he considers to be the real risks. Read the letter here.