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Benjamin Day Benedicte Gravrand, Opalesque Geneva:

Participants at the recent Opalesque London Roundtable discussed opportunities within the bond markets.

Creditors versus debtors "Rather than looking at the world as emerging markets versus developed markets, we look at it as creditors versus debtors," explains Benjamin Day, manager at Stratton Street Capital, a London-based partnership with $1.2bln AuM and a primary focus on fixed income (credit) investing. "We believe fixed income benchmarks are inefficient in their construction - traditional benchmarks give a larger weighting to those countries and / or companies that issue more debt, and so it typically leads benchmark-driven investors to invest in the most heavily indebted nations of the world, which in our view is counterintuitive. This also leads to the anomaly that you end up being paid more to lend to the most creditworthy nations as demand is focused on the debtors. Quite simply put, we would rather lend money to those that have a greater propensity to pay us back."

Thanks to the quantitative easing (QE) polices around the world, he continues, Germany is potentially heading to 10-year negative yields and there is already a five-year negative yields across the market. So now people are looking at equity markets for income.

"There are however opportunities within creditor nations to find attractively valued credits off......................

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