Corporate bonds should play a part in anybalanced portfolio

While many of the investors who have sold equities in favour of bonds during the bear market are likely to switch back when it abates, credit can offer strong long-term returns in comparison to equities

Corporate bonds have been the only silver lining in a distinctly cloudy past three years for investors. The turmoil of equity markets has seen investors rushing towards so-called safe haven investments, namely corporate bonds and gilts and it is easy to understand why. Fixed interest has traditionally been a very attractive area for the more risk-averse investor and for those preferring steady income rather than inconsistent growth. And now these investors are being joined by an increasing number of shell-shocked equity investors who have grown tired of market movements eating up thei...