M&G confident bond markets not in bubble

M&G Investments is confident there is no bubble in bonds as subdued interest rates and inflation pro...

M&G Investments is confident there is no bubble in bonds as subdued interest rates and inflation provide a strong backdrop for the market. Anna Lees-Jones, fund manager at M&G, said a fundamental demand for fixed interest will continue to increase from pension funds, as a result of FRS17, insurance companies and individuals looking to reduce equity exposure. Within the market, Lees-Jones feels the best value is in corporate bonds rated A and BBB. She said: 'You may see more government bond issuance as the deficit increases, which is a reason to buy corporates rather than gilts. The A...