Craig MacDonald, investment director at Standard Life Investments

• The technical trends are supporting value in the corporate bond market as the market reacts positively to credit ratings upgrades. But ratings have not improved sufficiently to justify price rises. • Gilts are likely to be range-bound due to the low growth environment. • Corporate bonds have performed very well with some strong dramatic movements in the sector. While the rally of recent months is unlikely to continue, corporate bonds are likely to keep performing well. • Supply of gilts will increase as fiscal deficits drive government issuance, while corporate bond issuance is li...