Orphan bonds could be source of absolute value

Value can be found in bonds despite central bank interventions that are impacting spreads. Absolute value is hard to fund with the exception of orphan bonds, says GAM fixed income expert Haywood.

Orphan bonds hold value, says GAM fixed income expert

As central bank decisions continue to impact bond markets, Tim Haywood, an investment director and business unit head for fixed income at GAM, continues to find value.

Haywood, who with Daniel Sheard is co-manager of the GAM Star Absolute Return Bond fund, which was launched in April this year, says one theme he is currently pursuing is on valuation of government bonds. "Two markets are overvalued based on economic activity not being quite as bad as the bond markets indicate. Those are the US