What Next for Corporate Bonds?

August was another difficult month for most corporate bond markets, both investment grade and high yield, with only European corporates outperforming domestic sovereign debt

Andy Brunner 9 September, 2015 | 2:14PM

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Corporate debt is expected to outperform governments given the yield pickup and still supportive credit fundamentals. Near term technicals in investment grade and high yield remain a headwind but spreads should eventually modestly tighten from recent highs. On a 12 month view riskier bonds, including high yield, remain the best but not necessarily good value in the US and EU.

August was another difficult month for most corporate bond markets

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About Author

Andy Brunner

Andy Brunner  is Head of Investment Strategy, Morningstar UK

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