Although pre-war jitters and the recent surprise 0.25% cut to UK base rates continue to fuel the ral...
Although pre-war jitters and the recent surprise 0.25% cut to UK base rates continue to fuel the rally in investment grade bonds, the top of the market may have already been seen last year. According to James Foster, manager of the Isis Extra Income Bond fund, the growth in capital values in the investment grade sector had all but topped out by last October. 'We pointed out then that gilt yields were at their lowest for almost 40 years and tried to warn investors that it would be the high-yield bond market that would be next to benefit from outperformance,' he says. 'In our opinion...
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