The US sub-prime meltdown has created opportunities for skilled fixed income managers who have the cash, according to the latest fixed income review from Zenith Investment Partners.
The research firm said that some corporate bonds funds were better placed to add value going forward following the credit crises during June and August.
Managers that are liquid enough to reinvest into sound corporate debt securities can add value over the short to medium term the report said.
Zenith said the blow out in credit spreads created increased opportunities for active fixed income managers. This scenario occurred following the Enron collapse in 2002 and the Asian financial crises in 1997.
The fixed income managers that Zenith met with, however, told the research firm they were waiting for the dust to settle before looking to invest any of their cash reserves.
Following the review of 73 fixed income managers, Zenith added ten managers to its recommended list.
Three managers were rated highly recommended and included the Credit Suisse Syndicated Loan Fund, the Macquarie Diversified Fixed Interest Fund and the Putnam Worldwide Income Fund.
