F&C predicts 'aggressive' bond issue period

Mossakowski explained that corporate bonds have been selling off since the beginning of the year over fears of US recession, further collateralized debt obligation/asset-backed security write-downs and the fate and subsequent fallout of monocline insurers. He said: "In February, credit spreads decoupled from equities and continued to sell off. Bonds and equities are beginning to price in increasingly divergent outcomes - the former a US recession, the latter a soft landing. However, corporate bond markets have recently stabilised following rumours of a bank led recapitalisation of Ambac...