Letter to shareholders - Value Bonds

“We see two opportunities to beat the market – European financials and off-benchmark small caps. Together they can generate attractive returns”
Klaus Blaabjerg, head of Sparinvest’s Fixed Income team, believes Europe’s banks are the most attractive segment of the High Yield market with regulators doing an excellent job of protecting bondholder interests. He also believes energy is the best hedge against geo-political risk, finding exposure amongst off-benchmark small-cap Nordic producers.