Bond markets reward higher risk investors

higher risk rewarded in fixed interest markets

Fixed interest markets have continued to reward higher risk investment strategies in the UK, with corporate bonds outperforming gilts throughout much of 2003. According to Standard & Poor's latest review of the fixed income sector, lower-quality higher-yielding bonds have outpaced their better-quality counterparts and within the high-yield market volatile areas such as telecoms performed better than defensives. As various managers were not expecting such trends, S&P analyst Gordon Wright said their investment strategies were temporarily caught out. "Ed Britton at Barings, for example...