Geopolitical turmoil helps out sector

These last few months have been interesting times to be investing in corporate bonds. The geopolitic...

These last few months have been interesting times to be investing in corporate bonds. The geopolitical and economic turmoil has been a boost to all bond prices over the last year. The war with Iraq is over, although the peace has not yet started. This potentially more stable environment has meant that bonds have now stopped rallying and have steadied close to historically low yield levels. Gilts with 10 years to maturity now yield 4.3%, down from 5.0% at the start of 2002. UK inflation is stable but with slow global growth there is a possibility of a further round of international i...