Success for corporate bonds could boost finance recruitment

Those seeking banking jobs in London may be interested to note comments made by an expert that the corporate bond ''revolution'' will prove successful in time.

According to Colin Jackson, director of Baronworth Investment Services, the decision by the London Stock Exchange (LSE) to introduce the retail bond market is an "excellent" one because it places "corporate bond investment within reach of the small investor".

He forecast that once people have been educated about the opportunities, the bonds will become successful.

If his predictions are correct, then the bonds may potentially create more investment banking jobs in London by providing wider access to fixed income products.

Under the LSE electronic Order Book for Retail Bonds scheme investors are able to purchase corporate bonds at a minimum of £1,000 and there are ten versions currently available, while 49 gilts are also for sale.

His remarks follow data from the Fair Investment Company indicating a dip in cash investments because of the low interest rates currently on offer, making products such as bonds more attractive.