Prudential: Negative noise over fixed income overdone

Andy Brown, investment director at Prudential's Portfolio Management Group, believes there is great value in the corporate bond market and that noise to the contrary is overdone.

When it comes to corporate bonds, it's certainly been a lively start to 2013 with companies borrowing more money than in any other January on record. There is a certain bullish sentiment which has encouraged investors to lend despite slender returns but this has led to concerns that this is merely a bubble that will surely burst at some point. However, on reflection, we feel this noise around fixed income is more than a little overdone. Yes, yields are narrowing but we feel this is a long way off flipping the other way and leading to losses. It is forgotten that these spreads are n...