It is now just over a year since the low point in corporate bond markets.
In the 12 months to end March 2010, sterling investment grade corporate bonds returned 21.7%, the BBB-rated segment delivered a staggering 42.6%, while gilts achieved just 0.8%. These exceptional returns from corporate bonds reflect the extreme stress in markets at this low point: the global financial system was fragile and still reeling from the demise of giant US investment bank Lehman Brothers; the economic outlook worldwide was poor, with Western industrialised countries still in the throes of recession; conditions in bond markets were dire as capital had been withdrawn from market-m...
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