The CFA’s latest Valuations Index for Q2 2017 revealed 84% of respondents perceive the asset class to be expensive.
This represents an increase for the fifth consecutive quarter, having risen from 69% in Q2 2016, and a new record high. In Q1 2017, the figure stood at 82%.
The CFA said the sentiment likely reflected the slight drop in corporate bond yields since Q1, from 1.66% on 8 February to 1.56% on 20 April.
The index measures investors’ perceptions of the values of bonds, equities and gold. In total, 192 CFA UK members responded to the survey.
Will Goodhart, chief executive at the CFA UK, said: “A year or so ago, our index suggested that investors were still finding some value in corporate credit even if government bonds were seen as very fully valued.
“That hasn’t been the case for some while and the most recent results show that investment professionals are less convinced by the attractions of corporate credit than at any stage of the past five years.”