Thanks to investors hungry for better returns, high yield bonds have performed strongly over the last year. More and more companies are issuing corporate bonds in that space. But how long can the good times last?
Henderson Strategic Bond fund manager John Pattullo has moved aggressively in to gilts in a bid to hedge against a worldwide deflationary shock caused by the chaos in emerging markets.
Schroders is to merge its Corporate Bond fund into the Cazenove UK Corporate Bond fund as it continues to streamline its range following the takeover of Cazenove Capital.
Fidelity has added a new product to its emerging market (EM) debt fund range, taking its total number of products to four.
Andy Brown, investment director at Prudential's Portfolio Management Group, believes there is great value in the corporate bond market and that noise to the contrary is overdone.
Analysts at HSBC have suggested the popularity of balanced funds towards the end of 2012 was due to advisers attempting to maximise commission income before the implementation of new rules following the Retail Distribution Review (RDR).