Hoover joined the portfolio re-allocation bandwagon this week by switching out of government bonds into credit, but conditions are not conducive to big-ticket purchases and primary market supply is needed from UK corporates.

Hoover Pension Scheme, via fund manager Phillips & Drew (P&D), is in the process of switching £100m out of index-linked gilts into corporate bonds to enhance its fixed income returns. The company's total fund is £400m, split between P&D and Schroder Investment Management.