What's the biggest risk to owning corporate bonds?

Expect monetary tightening

Since the beginning of September, there has been some repricing of bond yields, as the recent European Central Bank and the Bank of England policy meetings have been viewed as more hawkish by both the markets and investors alike.

We then have to add to the mix the fact that the US Federal Reserve announced it will embark on its balance sheet reduction programme later this month.  The move in the underlying government bond curves has seen some fixed income investors head for the sidelines. But so far, bond yields have yet to make a concerted move higher, and - removing geopolitical risk from the equation - it would appear that they are too low.  Where are the most attractive opportunities in the global bond sector? From a technical perspective, looking at the 10-year Treasury yield, it would not appear un...