Will UK bond proxies flourish again this year as rate rise concerns fade?

Companies such as Unilever and Reckitt Benckiser have outperformed other large caps in recent years, as a desire for ‘safer' income-paying stocks overrides concerns over valuations. The stocks' ‘bond proxy' status means they have been identified as potential losers in an environment of rising interest rates and bond yields, on the assumption investors will turn back to growth-focused companies. With a Bank of England rate hike seemingly pushed back once more, large-cap staples are already up 10% year-to-date, putting the stability versus valuation debate back at the forefront of manag...