The corporate bond outlook is more risk for less return

Gopi Karunakaran | Ardea Investment Management | 19 February 2019 | 0.25 CE

At last year's Market Summit, I argued bonds are no longer reliable risk diversifiers for investment portfolios, and indeed it was bond markets that became a key driver of equity losses in 2018. Investors must now focus specifically on the poor risk-return trade-off in corporate bonds, a small taste of which we got when the Q4 2018 volatility spike left credit markets smouldering. The eas...