Corporate Bonds

This month, Legal & General's Fundamentals focuses on the opportunities for investors in the corporate bonds space.

For a long time, corporate bonds have been seen as a safe-haven for investors seeking steady and relatively stable above-average returns.

With-profits funds could see improved potential returns in the near future as Prudential says equities are now cheaper than the bonds sector.

Corporate bonds should still see a good return over the next 12 months but companies will have to be more careful about their selections after a recent sharp re-pricing suggested the bonds bubble had finally burst, says F&C.