Global growth creating optimism in bond sector

Low default rates and a growing global economy are leading to optimism about the UK corporate bond s...

Low default rates and a growing global economy are leading to optimism about the UK corporate bond sector but there are still disagreements over high yield debt. Neil Sutherland, manager of the Axa Framlington UK Corporate Bond fund, takes a contrarian view pointing out the consensus tends to be universally negative on the prospects of corporate bond valuations against government bonds, while he is more positive. He points out that, as spreads have been tight between corporate and government debt he does not expect to see much deterioration in the fundamentals of underlying firms. "Globa...