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Article: Corporate debt: not all bad news.
- Article from:
- Investment Adviser
- Article date:
- September 20, 2004
CopyrightCOPYRIGHT 2004 FT Business. 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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Is it still appropriate to invest in corporate bonds? This is a key question on the lips of many IFAs. We have seen the bond market come off the highs of last June and the equity market stage a revival in its fortunes. The other bugbear of bond markets has also reasserted itself: higher interest rates.
In the UK, interest rates have climbed to 4.75 per cent and are set to rise higher. Although we expect equities to outperform bonds, we believe the differential in performance will be slight. In spite of improving equity returns, the case for fixed income has not retreated into the shadows.
The asset class will continue to appeal to certain key client ...