Improving research will bring long-term rewards

corporate bonds

In-house research may be a costly business but the technology is in place to make it worthwhile and it is likely to give a competitive advantage to those willing to commit to it

Independent research has become an increasingly important issue for investment houses, both for equities and fixed interest. On the fixed interest side, much-publicised credit issues and corporate failures (predominantly occurring last year) have emphasised the need for better disclosure and dialogue between companies and bond investors. For all investors, good and timely information is vital in picking the right stocks. While our equity colleagues have in general been well served historically with information flows, the same has not always been true for fixed interest investors. After...