Investors putting pressure on companies for rapid returns

UK corporate bonds have so far this year outperformed their gilt counterparts, with the Merrill Lynch non-gilt index returning 4.7% versus 4% for the equivalent gilt index. This might surprise the casual observer whose overriding impression of the market is one of dramatic credit 'events' such as the the highly publicised downgrading of General Motors and Ford bonds to junk status in the US. It is indeed true that the corporate bond markets continue to endure their fair share of risks. 'Event risk' certainly appears to have risen, with numerous themes and trends conspiring to do their bes...