Corporate bonding

With interest rates at a generational low, risk-free assets will provide minimal returns. So, what is the answer for bond investors?

How will UK retail investors earn an income from their investments in 2009? With the Bank of England rate at 1.5% and further cuts by the Monetary Policy Committee possible in the coming months, it is unlikely that the cash rates available on bank deposits will be sufficient to meet investors' requirements. As well as being a mechanism for stimulating the real economy, monetary policy also impacts the relationship between savers and investors in the financial economy, by influencing the return on the risk-free asset. US 10-year government bond yields have followed the federal funds rate l...