Where to find value in bonds

Bonds are expensive. But as professional investor Kevin Corrigan explains, you can find value by stepping away form the herd.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Kevin Corrigan, head of fundamental fixed income, Lombard Odier Investment Managers.

Things don't look that attractive in the bond world. Government bonds with their low yields offer meagre protection against rising interest rates, which will surely arrive at some point. Investment-grade corporate bonds are still fully priced. Non-investment-grade (high-yield) corporate bonds tend to be volatile and pay little in return for the risk of owning them.

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Kevin Corrigan is head of fundamental fixed income at Lombard Odier Investment Managers.