UK corporate bonds hit by increase in issuance

UK corporate bond issuance is helping ensure the sector underperforms gilts. With the share prices of many old economy stocks performing poorly, these types of companies are increasingly issuing debt to raise capital, which is leading to rising yields. Property firm Hammerson has seen its share price fall by 7.98% in the 12 months to 11 April while the FTSE All-Share Real Estate index is down by 9% in the 12 months to 10 April. The spread over gilt yields for Hammerson's debt issues has widened by 50 basis points this year with its corporate bonds now yielding 7%. The trend towards inc...