Faltering economies push investment grade bonds into spotlight

As economies falter worldwide, investment grade bonds may soon enjoy their turn in the sun. I am ver...

As economies falter worldwide, investment grade bonds may soon enjoy their turn in the sun. I am very bullish on the long-term outlook for Government bonds and investment grade corporate bonds in the UK, as I think the two main drivers of bond returns - interest rate risk (duration) and credit risk - look attractive. The duration element is compelling because I think it is very unlikely interest rates will rise. The UK economy is under huge pressure. The housing market is in freefall, and recent mortgage approvals data suggest things can only get worse, with year on year house price falls...