Jewson Associates: corporate bonds better than gilts

Tim Brown, director and head of strategy, sees the worst of the credit crunch as having passed, enhancing the attraction of corporate bonds. He said: "General support for the corporate market has come from the massive injections of liquidity into the financial system by central bankers to ease the credit crunch. The rescue of Bear Stearns by JP Morgan in mid March implied that the authorities would not allow a major financial institution to go bust. As a result, investors have been encouraged to take a less pessimistic view of corporate debt." Looking ahead, he added: "We expect more ...