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Article: Lies, damned lies and corporate bond statistics.
- Article from:
- Financial News
- Article date:
- March 9, 2003
CopyrightCOPYRIGHT 2003 Financial News Publishing Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Daniel McKernan, Aegon Asset Management
If you looked only at the news headlines over the past year, they would give the impression that corporate bonds had suffered their worst year ever.However, if you look at the total returns for corporate bond indices in the UK for 2002, they not only outperformed the equity market by as much as 30%, but also outperformed the equivalent gilt indices. Not bad for one of the worst years ever for corporate bonds. But can this be true or are the performance statistics hiding an underlying problem?
As the saying goes, there is no smoke without fire, so the dreadful headlines we have seen about the corporate bond ...