Despite the recent market volatility, corporate bond spread premiums versus government bonds are so wide that they cannot be ignored, according to fixed income analysts.

Investors have taken a dim view of corporate bonds in recent months, causing credit spreads to balloon. The telecom and auto sectors have been worst hit, as demonstrated by DaimlerChrysler's $6.5bn (€6.85bn) multi-currency bond issue launched this week, which pushed spreads into a high trading range.