Less positive on UK corporate bonds

Fund manager's comment

We have been fairly confident the UK corporate bond market would outperform gilts throughout the sum...

We have been fairly confident the UK corporate bond market would outperform gilts throughout the summer and this seems to have been the case. As the summer draws to a close and we look afresh at the market we face the same positives and negatives that have driven spreads for the past year or two. Although we are not yet bearish on credit relative to gilts, we are less positive than a month ago because we know the market faces an uptick in supply in September and we expect this to be at the higher beta/lower credit rating end of the spectrum. However, corporate fundamentals remain satisfa...