Sterling corporate bonds suffer from events in US

Investment grade sterling corporate bonds have started to underperform gilts and European government...

Investment grade sterling corporate bonds have started to underperform gilts and European government bonds, following events in the US. Investors looking to invest in the safest asset classes, fearing turmoil in the equity markets, have driven down yields on the short end of the gilt, corporate and European government bond markets. In response to concerns about consumer confidence and liquidity, the Federal Reserve and the European Central Bank cut rates by 50 basis points. The Bank of England followed suit, cutting rates by 25 basis points. Robert Gall, fixed interest investment man...