Outlook is still positive for UK Corporate bonds

Asset allocators are being urged to maintain their weightings in UK corporate bonds unless they fore...

Asset allocators are being urged to maintain their weightings in UK corporate bonds unless they foresee rates topping 6% in the next two years. David Oliphant, manager of Threadneedle's UK Corporate Bond fund, believes the underlying fundamentals remain positive for the asset class and domestic rates are likely to peak at 5.5%. "Interest rates will reach 5% by the end of the year. Everyone knows they are going up, but you need to expect them to hit 6% or more to sell out of bonds," he says. "Corporate bonds remain attractive on a long-term view. We have been seeing more upgrades than dow...