The converging worlds and diverging interests of equity and bond investors

Investors are used to thinking of equities and corporate bonds separately. However, in reality, they are two sides of the same coin and actions which favour one can have implications for the other. This is important as decisions taken by companies in the past decade have caused these two worlds to converge. As the cycle matures, companies are going to be forced to choose which to favour. The outcome of these deliberations will have a major impact on investors in both markets.