Institutional investors could benefit from a doubling in the issuance of UK corporate bonds over both of the next two years as companies realise they are undergeared, according to PricewaterhouseCoopers (PwC).

Dr Bill Robinson, an economist with PwC, said: 'We have carried out a study of companies in the FTSE 350 which shows there are a large number of companies out there that are not as highly geared as they should be. They could very easily create shareholder value at the expense of the tax man by borrowing more.'