Fund manager's comment/Anna Lees-Jones
Second quarter consolidation in bond markets has pushed yields to levels that should appeal to income-conscious and defensive investors. The yield on the 10-year benchmark UK gilt has risen from 4.5% to 5.3% since the end of March. Investment grade corporate bonds still yield more than their gilt equivalents, but, thanks to the continuing narrowing of spreads, their performance has been more resilient. As a rule, we believe the sensitivity of a portfolio of investment grade corporate bonds is around 80% to inflation/interest rate expectations and 20% to the fortunes of the companies issu...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes