For the first time in a single year, global issuance of corporate bonds has exceeded $1 trillion. The boom partially has been because of investor demand as well as a tightening of loan standards by banks. Dollar-, yen-, euro- and sterling-denominated deals all have experienced an increase in issuance, most at record levels. "Corporate bonds are the No. 1 asset choice. We are very overweight in corporate bonds. The spread of corporate-bond yields over government-bond yields more than compensates for any company default risk," said Richard Batty, investment director at Standard Life Investments.
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