Companies are making record proﬁts. Sounds like a good group to lend to. High-quality corporate bonds are expected to be one of the most attractive investments in the bond market the next 12 months, according to Morgan Stanley Smith Barney. It expects investment-grade corporate bonds to return 4 percent to 5 percent.
That may sound small, compared with the 7.5 percent rise for the S&P 500 this year. But bonds have historically been less volatile. Intermediate-term bond mutual funds fell an average of 4.7 percent in 2008. The S&P 500 fell 37 percent. Reasons to consider corporate bonds:Associated Press