Market opportunities improvefor corporate bonds

Opportunities for generating returns from government bonds have been greatly reduced in recent years. Falling inflation has driven government bond yields lower across markets, reducing the medium-term expected returns from government bonds as an asset class. At the same time, the closer cyclical alignment of major economies has led to greater correlation between regional market returns and a convergence in interest rates. Together, these factors mean fewer opportunities to add value through country selection. Investors are therefore seeking alternative asset classes and benchmarks, mo...