Corporate bonds - Inflation rise may rock bond performance

International bond markets have performed remarkably well over recent months, benefiting from a major spike in investor risk aversion. As economic data suggests the US economy could slip into recession, investors have become unwilling to take on risk and have sought out the perceived safe haven of fixed-interest investment. Most major bond markets have performed well, but the greater safety of government bonds enabled them to outperform other, less-secure fixed-interest stocks, such as corporate debt. The recent performance of bond markets could mean it will be difficult for them to make ...