Corporate profitability stokes continued strong performance

With profitability remaining strong for companies in the US, UK and Europe, managers believe both high yield and investment grade corporate bonds will continue to do well. Keith Swabey, managing director of fixed interest at JPMorgan, says: "In the US the high yield corporate bond sector has performed strongly in the last 12 months as companies have sorted out their debt problems. We expect this to continue as company balance sheets further recover and investors feel more comfortable investing in the riskier higher yielding securities." Currently, JPMorgan's corporate bond strategy is ...