Corporate BondsNov, 2019
The 2019 boom in corporate bond issuance has been driven by both historically low funding costs and a move away from the traditional sources for funds, but will it last? Our Corporate Bonds special report, published in The Sunday Times, explores how corporate bonds are transforming the market from originally being seen as complex financial instruments to Netflix using bonds as a way to produce films and box sets. It explores the host of reasons why companies issue bonds, from overseas expansion to M&A. This report looks at what it will take for corporate bonds to become more commonplace among retail investors and if the coco bond ban should be lifted. Finally, the featured infographic analyses risk versus return when investing in corporate bonds in comparison to other mainstream assets.
Corporate bonds are often overlooked by retail investors, seen as overly complicated financial instruments used exclusively by large institutions and fund managers. But in an environment of low interest rates and volatility in other markets, the risk-return balance has tipped in their favour. This infographic explores why high-net-worth individuals invest in corporate bonds and how yields compare with other mainstream assets.