Corporate bonds have staged a significant recovery in 2012, according to the latest figures from Cofunds.
Yields on UK government debt were trading at an all-time low on Wednesday amid fresh panic in Europe, which sent equity markets reeling.
In the latest Interactive Financial Adviser debate, our panelists from Aviva Investors, Legg Mason, Rathbone Unit Trust Management and S&P Capital IQ discussed Strategic Bonds.
Retail investors are continuing to flock to fixed income funds, topping up their positions by over £500m last month, despite the rally in equities, Investment Management Association (IMA) figures show.
Merrill Lynch's chief investment officer Bill O'Neill has advised investors to steer clear of government bonds, saying they will only offer value in a double-dip environment.