30/09/2009
Corporate bond markets not affected by bubble
Agefi Switzerland reports that Adam Cordery, manager of the Fixed Income fund from Schroders, claims that “the bubble in the bond markets only affects government bonds, not corporate bonds.” Investors’ concerns are centred on the risk of inflation and a continuing lack of opportunities on the credit markets. In terms of inflation, Schroders is predicting a two-stage increase in the next two years: first, a phase of falling inflation, followed by a rebound, due to economic recovery and the effects of currency injected into the economy. In this environment, the British firm considers inflation-linked US and Japanese bonds more attractive than their European counterparts.
