Dramatic sell off spells good value

Fund manager's comment

For some time there has been concern about the absolute levels of interest rates in the gilts market...

For some time there has been concern about the absolute levels of interest rates in the gilts market and the narrowness of spreads in the corporate bond sector. It has also been clear that a correction was warranted, given the prevailing rate of inflation and the benign level of growth in the UK economy. The economic data of late has been mixed. Manufacturing output and retail sales have been weak, although the consumer continues to show signs of life, with the Gfk Martin Hamblin consumer confidence index rebounding in March. The housing market remains on a good footing, with prices in man...