Corporate bonds make a better investment than equity and should continue to do so while stock markets founder, according to credit analysts at Barclays Capital.
Gary Jenkins, head of investment grade research at Barclays Capital, said: "If you want real capital appreciation, equities are the place to be, but if the equity market doesn't start performing, you might get a better return out of bonds." He expects people to start looking carefully at the way they decide asset allocation (see table 1).
