Bonds can answer search for yield

With the UK base rate at 4%, many investors are looking to corporate bonds to meet their income requirements

With the UK base rate at 4% and the 10-year gilt yielding 4.5%, it is clear that income ' seeking investors, particularly those approaching a lengthy retirement, cannot afford to rule out corporate bond funds where yields can even reach above 10%. However, while the need for income alternatives in a low interest rate environment may be clear, fund selection is not easy given the proliferation of bond funds already in existence, not to mention those scheduled for launch over the next few months. Furthermore, the UK Other Bonds sector is far from homogeneous with fund management houses em...