Jewson Associates: corporate bonds better than gilts

clock

Corporate bonds offer better value than government bonds as normal conditions return to the corporate debt market and spreads fall further, Jewson Associates has asserted.

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Fixed Income

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

The key themes in global bond markets over the past month.

Kunal Mehta, Head of Fixed Income Specialist Team, Vanguard, Europe and Suparna Sampath, Fixed Income Product Specialist, Vanguard, Europe
clock 01 February 2024 • 8 min read
Bond market: Forget the crystal ball and focus on the easy win

Bond market: Forget the crystal ball and focus on the easy win

Fixed income offers more value now than at any time in the last decade

Darius McDermott
clock 28 November 2023 • 5 min read
Why it pays to be nimble in the fixed interest market

Why it pays to be nimble in the fixed interest market

Agility and active management needed when 'the chips are down'

Jerry Wharton
clock 21 September 2023 • 4 min read