Corporate bonds play an important role in the diversification of your portfolio by providing stability, offsetting risk and generating income.
This asset class allows you to invest higher up in the capital structure of a company putting you in a safer position should the company go into liquidation. This is a benefit not afforded by many asset classes.
Fixed income investments provide a steady income stream through coupons – the interest earned on a bond. Should growth begin to disappoint, other asset classes whose prices vary with future top line earnings may lag corporate bonds. This is why, in part, bonds generally do not correlate with equities and other markets.