Barings says it is time to sell corporate debt

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Corporate bond funds became highly popular over the last year, but John Birdwood, head of multi-asse...

Corporate bond funds became highly popular over the last year, but John Birdwood, head of multi-assets at Baring Asset Management, said investors must face up to the fact that few other asset classes offer so many ways to lose money. Investment grade bonds have modest diversification benefits but are vulnerable to downgrades, widening spreads and a secular rise in yields. Investors can seek protection in index-linked securities, duration management or alternatives, but the asset class will struggle to offer the kind of returns seen over the past 10 years. Birdwood said there were ever m...