Woolnough makes largest ever bet on high yield

High yield spreads have widened significantly in recent weeks as markets grow concerned over prospects for growth and the eurozone, but Woolnough believes spreads are now pricing in too pessimistic an outlook. "We have been selling some of our safer defensive things we have owned and putting more credit risk on board", Woolnough said. "We have been increasing our high yield exposure because we think there is good value there. The risk-reward trade-off is good. The weaker companies went to the wall in 2008 but the ones that are left are pretty healthy. We want to lend to this healthy c...