Why it pays to be nimble in the fixed interest market

2022 was a torrid year for bond funds across the board. High inflation prompted a string of interest rate hikes from the Bank of England were compounded by a deteriorating economic outlook (increasing the risk of companies defaulting on their borrowing) and a broad sell-off in credit spreads across the market did further damage to capital values. However, while not a single bond fund in the IA Sterling Corporate Bond sector gained in value last year, some were very much harder hit than others; the worst performers lost up to 35% over the period (falling by as much as 45% at the low point...