Bonds losing safe investment status

The current state of bond funds is an interesting indication of the pitfalls faced by investment int...

The current state of bond funds is an interesting indication of the pitfalls faced by investment intermediaries. As revealed in the latest IMA figures, the UK Corporate Bond sector saw outflows of £204m in February, suggesting investors are currently piling out of the sector. The reasons for this are obvious: yields from credit are at long-term lows and many corporate-bond funds have actually lost money over the past 12 months. While the sector's stars are sitting at the top of the peer group, even managers such as Invesco Perpetual's Paul Read and Paul Causer and M&G's Richard Woolnough...