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Banks bullish on credit

Despite the levels to which equity valuations have fallen, banks and investment firms recommend investing in bonds and in particular corporate bonds in the short and medium term.

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Banks and institutional investors are advising clients to move money into fixed income and, in particular, corporate bonds despite the weak credit environment and low equity valuations.

The decision of Sainsbury’s £1.9 billion pension fund to transfer £200 million out of UK equities into global fixed income was further evidence of investor scepticism that equities are set for a rapid rebound.

And

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