Corporate bonds will continue to climb: Manager

A comeback for Canadian corporate debt and sustainable selections see Patrick O’Toole’s corporate bond fund at CIBC top nine percent returns so far this year

Michael Ryval 12 September, 2019 | 1:07AM
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Last year was a challenging one for corporate bonds as returns were generally flat – but not so much this year. Clearly, patient investors are being rewarded as Canadian corporate bonds shine in a global low yield environment.  

2019 is shaping up to be a reversal of 2018 and funds such as the 4-star rated $5.3 billion Renaissance Corporate Bond Class F are up 9.02% year-to-date (Sept. 3), compared to 7.33% for the Canadian corporate fixed income category. Going forward, although fund manager Patrick O’Toole is not expecting the same magnitude of returns, he is confident that corporate bonds will see continued upside.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BCE Inc63.38 CAD0.00Rating
Renaissance Corporate Bond Cl F10.22 CAD-0.13Rating

About Author

Michael Ryval

Michael Ryval  Michael Ryval, a regular contributor to Morningstar, is a Toronto-based freelance writer who specializes in business and investing.

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