Large bonds no guarantee of success

Buying large or well-known company bonds is no guarantee of success, according to M&G's head of reta...

Buying large or well-known company bonds is no guarantee of success, according to M&G's head of retail and institutional fixed interest Jim Leaviss. After a period of record defaults, Leaviss said there is plenty for investors to go for on a stock-specific level within higher yield and he made it clear that large stocks were not necessarily secure, as evidenced by the fate of Marconi. In addition, he pointed out that bonds, including high yield, are paid out before equity holders and as such form a safer asset class than buying shares. Within Moody's Ba3, equivalent to an S&P rating o...