Woolnough: Credit remains cheap despite sharp rally

Woolnough, manager of the £4bn M&G Corporate Bond fund, says while credit no longer represents the once in a lifetime opportunity it did earlier this year, investment grade bonds still represent good value. M&G says BBB-rated industrials are now yielding 278 basis points more than government bonds, down from a high of over 500bps in March this year. By comparison spreads peaked at 275bps in 2002 following the tech bubble bust. "While the economic environment is still problematic, many issuers have been responding in ways that are positive for bondholders," Woolnough says. "Companie...