Corporate Bonds

Investors made a marked move towards the Cautious Managed sector last month, at the expense of corporate bond funds, which continued to fall in popularity.

Interactive Financial Adviser

Retail investors are being excluded from the UK corporate bond market, warns the Investment Management Association (IMA).

This month, Legal & General's Fundamentals focuses on the opportunities for investors in the corporate bonds space.

For a long time, corporate bonds have been seen as a safe-haven for investors seeking steady and relatively stable above-average returns.

With-profits funds could see improved potential returns in the near future as Prudential says equities are now cheaper than the bonds sector.

Corporate bonds should still see a good return over the next 12 months but companies will have to be more careful about their selections after a recent sharp re-pricing suggested the bonds bubble had finally burst, says F&C.