Andrew Burton, Head of Liability Management, says funds must weigh up whether to hold onto these bonds and absorb paper losses or sell them to crystallise a loss before switching into other asset classes, credit quality or duration.

Understanding what may motivate or constrain investors holding or selling their stocks of low-yield bonds is vital for any corporate which might be thinking of issuing new debt or buying back old paper.

Read the full article at RBS Insight.

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