Any views on the standard life ireland corporate bond fund? It seems to be invested predominantly in core more than peripheral european company bonds. Just wondering what would happen with a fund like this in the event of a euro break up?
It would entirely depend on what you mean by a break up. Unlike equities, bonds are not normally re denominated after issue. It is still possible today to buy bonds denominated in pre Euro currencies.
There are 500 bonds and over 200 different companies in this fund. Key here is that many of these companies are from outside the euro zone - some Pan European but also from over over the global - US, Canada, Oz etc. However all the issuance is in euro. As Jim says it depends on what type of break up happens or doesn't!
Key with corporate bonds is the default risk.