It goes without saying that 2022 was a tough year for bonds.
They have always been seen as lower risk investments, but due to high interest rates they suffered significant losses.
This year opened with more optimism about the fixed income market as it is anticipated inflation will fall and the rate at which rates have been going up will slow down.
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In the corporate bonds space, while some advisers avoid corporate bonds because they come with extra risks such as spread widening or default risk, others stress that there is a place of corporate bonds within portfolios.
By the end of this report, worth 30 minutes of CPD, you should be able to:
- Describe the current economic conditions and its impact on bonds.
- Identify the type of investor corporate bonds suit.
- Explain how to manage risks in corporate bond market.
