Central bank support for credit markets may help them outperform equities

Firstly, equities. The companies we invest in continue to pay their dividends, even when many others are cutting or suspending theirs and/or raising equity.

Recently we have had Sanofi, BMW and Danone all pay or announce their dividends. RDS paid its reduced dividend; and then we switched our holding into Total, which has held its dividend steady.  Credit update: How 'fast and furious' fiscal policies are moving markets Most of our stocks have now gone ex-dividend or confirmed they are paying; so we are not expecting any surprises. The equities we own still yield a decent 5.2%, despite a run-up on stocks since the lows in March. But we are not looking to add to our overall exposure. That is because, given the extraordinary support from...