Opportunities remain in bonds but diversification will be the key

Corporate bonds

This week's Conjecture panel agree stock selection will be key for those in search of higher returns

Elements affecting corporate bonds this year, such as narrow spreads, relatively cheap equities and continued demand for fixed interest from pension funds, are creating a mixed picture for investors. Schroders' bond manager Adam Cordery and Britannic's Chris Bowie both believe that there remain opportunities in bonds but this year will be a case of heavy diversification across issues and sectors to maximise yield opportunities. While Bowie believes bonds look expensive compared to equities, Cordery disagrees; however, both agree that stock selection remains key to any decent returns from t...