Time to sell good quality corporate bonds

ASB says investors considering liquidating their portfolio in the short term can consider selling now, as demand is very high for better grade securities and there is not much selling competition.

It says that following the 2009 Government Bonds maturity, the market has been heavily supported by excess liquidity. .

"No big new issue has come to the market since Vector and Rabobank. This has caused a significant surge in bond prices across the board, most investment grade rated bonds have seen large falls in their yields, and several issues are almost impossible to source."

"We expect this liquidity problem will continue until at least September."