Azhar Hussain expressed relative optimism on the high yield bond market’s prospects as entities within the sector were less leveraged today.

Addressing Valletta Fund Management’s annual sales seminar, Mr Hussain, fund manager and head of high yield and leveraged loans at Insight Investment Management (Global) Limited of London, said high yield corporates have healthier balance sheets. Median leverage ratio for all rated corporates was considerably lower than that recorded in 2008.

The event serves to give Bank of Valletta staff authorised to promote VFM investment funds an update on market highlights and of VFM’s range of local and international funds.

VFM chief officer Peter Perotti said that in turbulent times of highly volatile markets, collective investment schemes offered several advantages, including an underlying diversified portfolio, liquidity and also active management by professional fund managers. In the current environment it was useful to include professionally managed funds as an integral part of an investor’s portfolio.

VFM head of marketing Mark Vella highlighted how the third quarter was volatile and painful as investor sentiment shifted from the hope for a second half of the year rebound from the spring’s soft patch, to worries that the world’s largest economies were headed into a double dip recession.

BoV’s David Pace Ross and Noel Cassar gave an update on the local market; Antoine Briffa reviewed the performance of the local funds managed by VFM.

All believed opportunities existed despite the expected volatility in the local equity market. Recent developments in Libya have eased investor concerns with the local corporate bonds market regaining its previous stability.