Adviser > News > March 2011 > Is it time for you to consider corporate bonds?
Is it time for you to consider corporate bonds?
Find out how the current market conditions make the corporate bond market an attractive alternative.
Royal London Asset Management (RLAM) believe the corporate bond market represents a fantastic opportunity at the moment and with the expertise they can provide in this area, it’s easy to see why. The outlook for this market in 2011 looks bright and can offer pockets of exceptional value.
So what makes the bond market attractive?
Well as a starter for ten, the global economic recovery has made progress over the last year. This outlook remains attractive to corporate bonds and RLAM's view is that this will continue throughout 2011. With lower returns being produced on cash deposits and gilts, the yield on corporate bonds seem very appealing in comparison.
Corporate bonds are also an essential element of a well diversified investment portfolio and with UK interest rates remaining low, we could see some very attractive returns from the bond market.
Investment returns are not guaranteed. Past performance is not a guide to the future. Changes in exchange rates may affect the value of your investment.
How does our process make a difference?
RLAM are big players in the UK bond market. Managing over £10 billion of assets in the bond market (as at 31 January 2011) gives them an informative edge.
Add to this the fact they use their our in-depth market knowledge to invest in a broad range of bonds across the spectrum of credit ratings as well as those which are not rated by rating agencies. Whereas credit agencies are more interested in assessing a company's probability of default, RLAM are more interested in obtaining a higher yield for the risk they're willing to take. This means RLAM are ideally placed to exploit investment opportunities in areas of the market that others would simply overlook.
Want to know more?
For more information,
- download our guide on Scottish Life corporate bond funds - Managing risks and maximising opportunities
- speak to your usual Scottish Life contact.
For professional advisers only
