Sector report: Three key determinants of future UK corporate bond returns

The Investment Management Association (IMA) defines the Sterling Corporate Bond sector as that which includes funds investing at least 80% of their assets in sterling denominated (or hedged back to sterling) BBB minus or above corporate bond securities (as measured by Standard & Poor's or an equivalent external rating agency). This excludes convertibles, preference shares and permanent interest bearing shares (PIBs). This definition provides fund managers with a large degree of flexibility within which to apply their investment strategy, including: the ability to invest in foreign cur...