What is the future for distribution bonds?

This muse on reliability coincided neatly with my train of thought as I was, at the time, reading some recently published ABI statistics which show a dramatic drop in new distribution bond premiums in the first quarter of 2008 compared with the same period last year. In terms of the possible reasons for this decline in distribution bond sales, increased market uncertainty in the second half of 2007 will certainly have had an impact. As distribution fund investors tend to sit at the lower end of the investment risk spectrum the credit squeeze/Northern Rock headlines may have had a dispropo...