Gentlemen Prefer Corporate Bonds to Sovereign Debt.

The author predicts a possible growth in the corporate-bond markets over sovereign debt in 2010. He says that corporations will reduce their borrowing as government initiatives aimed at easing credit are expected to increase yields. He forecasts that the U.S. dollar and sterling will experience the same growth of investment-grade euro-denominated bond market. He adds that the requirement to reduce balance sheet of banks will increase support to corporate-bond markets as source of funding and reduce defaults.