Corporate bonds are an income product not a source of principal gain

Investment-grade corporate bonds are suddenly in vogue for investors unimpressed by the yields avail...

Investment-grade corporate bonds are suddenly in vogue for investors unimpressed by the yields available in money markets, as central banks around the world reduce interest rates. However, for a variety of reasons, we are less optimistic than some other bond investors about the prospects of the asset class and think in the current economic environment corporate bonds should be viewed more as an income product rather than as a source of principal gain. It would indeed be true to say the spread or additional yield now available on investment-grade corporate bonds is at its highest level in ...