Smith & Williamson's John Anderson has been snapping up Tesco bonds as they offer "the most outstanding value he has seen for some time".
The manager of the £29m Fixed Interest fund said although he is cautious on corporate bonds in general, he is actively buying Tesco. "I am a value investor and it is priced like a junk bond, even though we know it is not a junk bond," he said. Tesco has been downgraded by ratings agencies since it published several profit warnings and admitted to accounting discrepancies last year. The supermarket recently announced plans to close 43 stores and cancel its full-year dividend. However, former J.P. Morgan manager Anderson criticised the ratings system, and the impact it has on the ind...
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