Bank of England

This week's panel discuss the future of corporate bonds going into 2010

While job losses have been milder than those seen in previous recessions, it might be tempting to think, despite an extraordinary recession, we are set to enjoy an ordinary recovery.

Corporate bonds posted a strong performance in 2009 (c. 15%), more than recovering the losses of 2008, and have dramatically outperformed equities over the last decade.

Interest rates have been held at 0.5% for the eleventh consecutive month today.

Swiss food company Nestlé has ruled itself out of the bidding for Cadbury and has instead given Kraft Foods the firepower to sweeten its own offer.

As the year end looms, investor focus has turned to the outlook for 2010.

GLG Partners has appointed Sir John Gieve, the former deputy governor of the Bank of England, as senior adviser.

It is enough to give you vertigo. Corporate bonds have had a wonderful six months.

Since the equity-market lows in March of this year, the UK stock market has risen in anticipation of an improvement in the economic environment. Indeed, data on the economy has certainly improved, providing grounds for hope the worst of the recession...

As an astounding year nears its end, it is hard to recall the true despair that existed in almost all markets other than government bonds one year ago.