Corporate bonds - Signs of resilience begin to emerge

After a period of underperformance extending back to last summer, corporate bond markets are now showing some resilience. Recapitalisation efforts by US and European banks, through rights issues and other means, have helped to restore some confidence. Outside the banking sector, company results have generally either met or exceeded expectations. As a result, with investment-grade spreads at disproportionately wide levels, investors have been encouraged to put some money back into better-quality bonds. Selectively, some companies have once again been able to borrow in the capital marke...