Bonds

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.

Analysts at HSBC have suggested the popularity of balanced funds towards the end of 2012 was due to advisers attempting to maximise commission income before the implementation of new rules following the Retail Distribution Review (RDR).

The Chancellor is on a collision course with bond markets over plans to change how inflation is calculated. The switch could bring the exchequer a £3.8bn windfall from a reduction in interest payments.

FIVE THINGS

In the latest Big Debate, our one-on-one special with Rathbone Unit Trust Management discussed Strategic Bonds.

Strategic bond fund managers Richard Hodges from LGIM and Fidelity's Ian Spreadbury both expect UK government bond yields to remain at their abnormally low levels for the foreseeable future.

An investors' forum representing £17.5m of business in stricken life settlement provider ARM Asset Backed Securities has called for an urgent bondholders' meeting to discuss the lack of progress in compensating investors.

In the latest Interactive Financial Adviser debate, our panelists from Brown Shipley Funds, S&P Capital IQ and TwentyFour Asset Management discussed Strategic Bonds.

SECTOR REPORT

A €100bn deal to shore up Spain's banking sector has boosted the euro and financial markets.