Outperformance of fixed interest doubtful for 2005

Lines between the performance of gilts, corporate and high-yield bonds over the coming year looks se...

Lines between the performance of gilts, corporate and high-yield bonds over the coming year looks set to be negligible. Jim Leaviss, head of retail fixed income at M&G, runs counter to the view, held by both Colin Harte, head of government bonds at Barings, and Frances Hudson, investment director of strategy at Standard Life, that high yield is the place to invest. "All three should give relatively good returns but our margin call is to favour gilts and investment grade together above high yield," Leaviss says. "High yield has done well over the past couple of years and while that should...