Advisor.ca | Corporate Bonds Better Than Governments
High-grade corporate bonds are better investments than government securities, argues John Braive, vice chairman of CIBC Global Asset Management.
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If you’re a global company with sales all over the world, “You’re actually well-diversified, with numerous income streams,” he says. “That’s a better security than a single-country security.”
While investors are still jittery about corporate debt, Braive says quantitative easing might help credit markets. He’s also optimistic about the results of the second quarter earnings season.
“People will feel more confident about buying corporate and high-yield securities if they look at the numbers and see there hasn’t been much deterioration,” he predicts.
Read: Investors say yes to Canadian bonds
As for the rest of the year, he sees a fiscal cliff coming.