Corporate Bonds: are they worth the risk?

And despite the odd disasters such as Enron and WorldCom, the sector has played its part pretty well. January IMA statistics show investors have faith in the bond sector, with inflows of £184m, despite retail sales as a whole falling £550.5m. However, the sub-prime crisis and subsequent credit crunch have thrown up serious queries about corporate bonds, and many smart investors are beginning to evaluate their positions in these portfolios. While corporate bond spreads are looking more attractive than at any time in recent history, the level of liquidity in the current market is virtuall...