Investors remain wary after Enron

By Robert Gall, head of sterling fixed income at Schroders Corporate bonds have continued to mak...

By Robert Gall, head of sterling fixed income at Schroders Corporate bonds have continued to make good progress so far this year and we expect them to continue to outperform gilts. However, the Enron collapse has brought accounting fears to the fore and, regardless of whether investors' concerns are justified or not, a number of bonds have come under pressure. Even some of the strongest issuers have been affected. The powerful long-term arguments in favour of corporate bond investment remain intact but current conditions mean only those investors with access to comprehensive credit...