Bullish outlook is undermined by rising inflation and interest rates

This week's topic for discussion is the outlook for corporate bonds

This week's Conjecture focuses on corporate bonds. Taking part in the debate were Paul Brain, director of fixed income at Newton Investment Management, and Bryn Jones, manager of Rathbones' Ethical Bond fund. What is the outlook for corporate bonds? Paul Brain (PB): We are still bullish on corporate bonds. This year looks very much like 2006 did initially, in terms of the environment for fixed income investing being very benign with low default rates, relatively stable interest rates and no real surprises on the economic front. We will have our portfolios positioned to take advantage of...