Fund managers debate future of bonds

The future of the corporate bond market is the subject of heated debate between fund managers. Some declare its current strength will continue, others claiming the downturn is just around the corner. The primary reasons given for optimism about the credit market in the US are the better standards of corporate governance that have developed their over the past few years combined with a strong institutional demand for the asset class from the big pension funds. On the other side, the doom-mongers point to weak fundamentals, stating that the technical drivers of the market will only suppor...