Third consecutive down quarter for UK bonds

S&P research reveals UK fixed interest vehicles have lost money for third quarter in a row in Q3, with spreads increasing across sectors

UK fixed interest funds lost money for the third consecutive quarter in Q3 with huge spread widening across the investment grade and high-yield sectors. Recent analysis by Standard & Poor's reveals wide divergence in performance over this period, with holdings in the decimated banking sector typically dictating fortunes. S&P analyst Irina Schoenberg said the median return in the period was -2.1%, following -1.3% in Q2 and -3% in Q1. "UK gilts outperformed corporates with the FTSE All Stocks returning 4.7% in Q3," she added. "Corporate bonds performed very poorly in September, as a v...