Attractions lie in corporate bonds

By Paul Causer, joint head of UK retail fixed income funds at Invesco Perpetual Equity markets a...

By Paul Causer, joint head of UK retail fixed income funds at Invesco Perpetual Equity markets are under pressure, even with the prospect of a global economic recovery later this year. Valuations are a sticking point, as they are for government bonds, whose yields have fallen to the point where many government debt markets offer little real value. Somewhere between these two asset classes lie corporate bonds. We believe corporate bonds offer superior risk-reward characteristics and could deliver good returns over the next 12 months. Just as the downturn was precipitated by a fall ...