Corporate bonds will beat gilts this year, predicts Schroders' Cordery

Schroders' Adam Cordery believes corporate bonds will outperform gilts this year on the back of hist...

Schroders' Adam Cordery believes corporate bonds will outperform gilts this year on the back of historically high credit spreads and their potential to outstrip inflation. However, Cordery warns careful selection is key in avoiding defaulters as there will be a huge disparity between the 50 best-performing and the 50 worst-performing bonds in the next two years. The manager of the Schroder Corporate Bond fund says: "Inflation is still a way off and is likely to be in negative territory for much of this year. When inflation does return, it will be more of a problem for government bonds t...