• The technical trends are supporting value in the corporate bond market as the market reacts positi...
• 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 likely to shrink as companies clear debt from their balance sheets.
• Demand for bonds will remain strong and will be backed by pension and mutual fund money, so overall demand will exceed supply.
• The US economy is improving faster than Europe because companies are reducing debt faster in the US. There are three downgrades for every upgrade in the US, while in Europe there are 10 downgrades for every upgrade.
'Asleep at the wheel'
Nomination deadline - 28 June 2019
Tactical opportunities will arise
Multi-asset funds saw £7.9 billion in net retail sales in 2018, sparked by a heightened awareness of risk, following a resurgence in volatility. Scottish Widows examines the appeal of this approach.
What made financial headlines over the weekend?