Prudential: negative noise over fixed income overdone

When it comes to corporate bonds, it's certainly been a lively start to 2013 with companies borrowing more money than in any other January on record. There is a certain bullish sentiment which has encouraged investors to lend despite slender returns but this has led to concerns that this is merely a bubble that will surely burst at some point. However, on reflection, we feel this noise around fixed income is more than a little overdone. Yes, yields are narrowing but we feel this is a long way off flipping the other way and leading to losses. It is forgotten that these spreads are n...