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Demand for corporate bonds soars, says IMA

Demand for the corporate bond sector has surged, according to the latest Investment Management Association statistics for July.

Having been the eighth most popular sector in net retail sales terms in June, the peer group jumped to second in the rankings in July with net inflows totalling £259.4m. In June, net retail sales for corporate bond funds stood at £130.3m.

Indeed, three out of the top five most popular sectors in July were bond sectors. The global bond sector topped the table with net retail sales of £360.9m, which the IMA says is the highest selling month on record for the peer group.


Meanwhile, inflows into the strategic bond sector hit £185.8m, ranking it fourth, with global growth sandwiching the bond sectors in third place.

The unclassified sector was the least popular sector in July, with the sector witnessing net outflows of £152.1m. This, says the IMA, was the sector’s largest recorded outflow since February 2008.

Overall, net retail sales for July came in at £2.2 billion, up £100m from June.

Unsurprisingly bonds were the leading asset class in July, taking £928m of net retail sales, up £349m from June. Equity funds attracted inflows of £857m, their highest sales since November last year.

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  1. “Cusp Bonds”

    Looking for those on the cusp of becoming investment grade as corporate earning strengthen and Government Bonds (UK and US) move into negative yield territory.

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