Corporate bonds - safer than sovereigns?

As attention focuses on potential sovereign default on weaker eurozone members, Georg Grodzki, head of credit research at Legal & General Investment Management, says corporates could provide a refuge

2010 will be remembered in modern financial history as the year that brought sovereign credit stress to the developed world and especially the eurozone. The sudden recognition that the fiscal deficits and debt burdens had grown beyond the point of sustainability had a drastic effect on sovereign risk pricing in both synthetic and cash markets.

While countries enjoying the benefit of their own currencies, especially the UK and the US, were largely spared the wrath of debt markets, despite equally