UK - Corporate bond investments will continue to outperform this year, Standard Life Investments predicts.
The fund manager attributed the “good performance” of corporate bonds to companies shoring up their balance sheets, rather than investing for future growth.
Head of global fixed income Rod Paris said: “We are confident that both the fundamental and technical factors point to a continuing positive outlook for investors.
“The cleansing of balance sheets should continue and investors are gaining more confidence in the companies that have survived over the past couple of years.
“The net effect is positive for corporate bond markets.”
Investment specialist Dennehy Weller added that corporate bonds remained the biggest selling sector.
The firm warned that corporate bonds aren’t the safe investment that many investors think they are.
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