Corporate bonds are not a simple one-way bet

With the corporate bond sector being seen as the next big performance bet, many investors will get caught out. Richard Hodges gives some pointers on how to get ahead of the crowd

The appetite for fixed interest investments is not hard to understand with returns from cash deposits low and equity markets so volatile in the current market climate. In addition, with the yields on corporate bonds at near all-time highs, investors could be forgiven for thinking this sector is the next big performance bet. However, Richard Hodges, manager of L&G's Dynamic Bond Trust, says despite the attractions of the corporate bond sector, there are pitfalls. Hodges believes the promise of high yields should not seduce investors, and that by understanding the sector better they can avo...