Corporate Bonds - Tough times, though gilts should perform

When even the Chancellor has to lower his growth forecasts, tougher economic times ahead seem pretty certain. The International Monetary Fund has recently published a set of downbeat forecasts that make sobering reading, predicting the US economy will shrink this year and struggle to grow next year. They expect the effects of the credit crunch to be felt in both the UK and European economies, forecasting only a degree of divergence rather than the much-touted 'decoupling'. According to their research, growth has averaged only 1% during previous credit events. They also sounded cautionar...