Via The Australian:
Australian fund manager Perpetual has sought to sooth investor nerves after its $500 million listed corporate debt trust was hit by an 8 per cent share sell-off amid a blow-out on junk bond markets.
Kristy Bradley, a client manager at Perpetual Investment Management, on Wednesday told shareholders in the company’s Credit Income Trust that Tuesday’s Reserve Bank rate cuts, which brought the official cash rate to a new record low of 0.5 per cent, will trigger a rush of money into high-yield credit markets.
