Corporate bonds look set to outperform gilts in 2002, as global markets tentatively head toward anot...
Corporate bonds look set to outperform gilts in 2002, as global markets tentatively head toward another growth cycle. With interest rates likely to rise throughout the year, opportunities in shorter-dated bonds could emerge as the market prices in the forthcoming monetary tightening overzealously. Will Hay, head of fixed interest at Standard Life Investments, says: 'Bond markets have priced in a great deal of monetary tightening over the next 12 months. Interest rates could stay lower for longer than markets expect, which will be positive for the short end of the yield curve.' Hay sa...
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