Corporates a good alternative to expensive government bonds

ON BONDS

MARIO FRAEFEL and CHRISTOF STEGMANN, senior portfolio managers of fixed income/credit at Swiss & Global Asset Management on Bonds

For more information on Bonds, search Adviserhound.com In the current environment of low interest rates and a subdued economic outlook, credit markets are offering attractive valuations, especially since the correction in Q2 2010, and the implied default rates in the current risk premiums are much higher than can be expected from historical experience. Corporate bonds are consequently becoming a real alternative to expensive government bonds. Risk premiums are close to or even above their historical average, the trend in defaults has been better than expected and many companies are...