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Article: Have bond investors missed the boat? Corporate bonds have seen stellar gains and investors are still piling in. How long will the good times last, asks Paul Farrow
- Article from:
- The Sunday Telegraph London
- Article date:
- September 6, 2009
- Author:
CopyrightCopyright 2009 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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Concerns were rife in March that the hordes of investors rushing
to buy corporate bond funds would have turned themselves into
fashion victims.
The reason being is that the most fashionable fund type each year
tends to come down with a mighty bump the following year. We saw it
in the technology boom in early 2000 when millions of pounds were
invested in technology funds. The bubble burst and people were left
nursing huge losses.
In 2006 the commercial property phenomenon provided us with
another classic example of investors following a fashion. Those who
joined the party late hoping to make a quick buck lost up to half of
their money.
The cynics wondered whether corporate bonds would ...