Outlook for corporate bonds is "good", says L&G

Corporate bonds returns could be as high as 5.5% over the next twelve months if gilt yield and spreads remain unchanged, according to Legal & General. With the spread tightening, however, returns are more likely to be around 4.5%. L&G estimated at its Fundamentals briefing this week that the potential range for corporate bond returns was going to be between 4.5% and 5.5% over the next year. Even in the worst case scenario - where gilt yields rise without a change in spreads - the total return would still be around 3.0%, L&G says. However, good corporate bond fund...