Donald Phillips on bonds

Corporate bonds offer stockpicking managers attractive opportunities

An investor who purchased the investment grade index in March 2009 would have made in the region of 19% in the last 12 months. Likewise, an investment in the high-yield index would have returned in the region of 90% over the same period. Such extraordinary returns are unlikely to continue but there are still opportunities for stockpicking managers to make attractive returns in corporate bond markets over the next few years. Corporate bond managers can invest in many areas. Depending on their mandate, they can lend to investment grade companies, high yield (aka junk-rated) companies or ev...