Here are some extracts (mildly edited in a couple of places) from a recent Q and A between Paul Read, co-manager of Invesco Perpetual’s popular and successful corporate bond funds, and IFAs. The basic message that comes out is that the corporate bond market has returned to normal. The outsize returns of the last 12 months from corporate bonds will not repeat, to the extent that equities may in many cases now offer better value. On the positive side, default rates are coming in well below the levels that doomsters feared at the height of the crisis last year. A good summary.