Recovery would boost corporate bonds

Following hard on the heels of a significant rally in the gilt market, talk of a turnaround in the...

Following hard on the heels of a significant rally in the gilt market, talk of a turnaround in the global economy has sparked the debate over whether the lean winter months for the equity investors are finally drawing to an end. Indeed, we have begun to see tentative signs of a recovery in corporate earnings and the equity markets have rebounded well from their September lows. We anticipate a gradual return to trend growth for the UK economy and we expect the Bank of England to begin tightening monetary policy in the second quarter of 2003. For these reasons we are confident of our for...