Low inflation bodes well for

With interest rates low and inflation under control, investors can expect the decent yields they have been getting from the fixed-interest market over the past three years to continue

It has been a good time to be a corporate bond fund manager, with credit outperforming equities for the third consecutive year as stock markets continue to suffer the worst bear market since 1974. The key to whether corporate bonds can continue to deliver decent performance levels is inflation. Rising inflation is an enemy of corporate bonds as it erodes their real value, but I believe that the current low level can be and will be sustained. I am also not one of those in the deflation camp. There has been increasing speculation that deflation -' when there is a general fall in prices f...