Investors who hold bond funds could see the value of their assets rise thanks to action taken by the Bank of England in response to the coronavirus epidemic.
Others, however, could suffer if their bond fund’s holdings are downgraded to “junk” status because of the damage caused to businesses by the pandemic.
Savers are urged to scrutinise their bond funds carefully to check whether they are in the former or latter category.
Earlier this month the Bank of England said it would start to buy investment-grade corporate bonds as part of its “quantitative easing” policy to support the economy. The