Legg Mason’s Brandywine Shuns China for European Junk Bonds
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Brandywine Global Investment Management LLC, a unit of Legg Mason Inc., is avoiding Chinese high-yield debt in favor of bonds from Europe, which economists bet will return to growth after five quarters of contraction.
About 35 percent of a global high-yield bond fund run by Brandywine is invested in Europe, according to Brian Kloss, a Philadelphia-based money manager at the company, which manages about $48 billion. The fund owns no debt from mainland China, he said during an interview today in Hong Kong, where the investment product isn’t available to retail clients.