Challenging year ahead for the sterlingbond market

While the current backdrop appears supportive with regard to bonds, investors need to be aware that the credit market is far from risk free

With the New Year well and truly upon us, many investors could be forgiven for thinking that it is merely proving to be a continuation of 2002, with equity markets struggling in what many now believe to be a permanent environment of low inflation and low investment returns. As this continues, more people start to consider investing in bonds as alternative investments to equities. Some even go as far as to state this to be an ideal time to be buying fixed interest given the persistence of equity markets' weakness. But is this really the time to consider switching into an asset type tha...