After a few difficult months for the Corporate Bond sector, Marianne Weller reviews the sector and highlights some of the funds most highly rated by the team at Morningstar OBSR.
According to the IMA, the Sterling Corporate Bond sector was the worst selling sector in July (based on net retail sales), this being the eighth month running that it has seen outflows. During recent months, there has been talk of the ‘great rotation' out of bonds into stocks as government bond rates rise from record low levels, but monthly inflow data can be misleading. It is, therefore, helpful to consider the journey that the corporate bond asset class has been on over recent years. Government bond yields reached record lows, with the yield on the 10-year UK gilt hitting 1.4% in July ...
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