Corporates staying strong despite inflation pressure

UK corporate bonds remain attractive despite a narrowing of yields following a third quarter rally in the bond market. Corporate debt appears strong, even in the current environment of rising interest rates and inflationary pressures. Christine Furquhar, head of treasury and fixed income at Clerical Medical, remains positive on corporate bonds. She says: "Our view is the market is at the top end of its trading range. Some 30% of our funds have holdings in corporate bonds now, compared with only 10% a year ago, and we intend to hold that position." She has increased bond exposure and wil...