The Financial Post reports in its Friday edition corporate bonds remain the better option for fixed-income investors heading into the new year, says RBC Capital Markets. The Post's David Pett, writing in Trading Desk, says RBC analysts expect spreads to narrow over the next year, largely because macro conditions, technical supply-demand forces and government yields all remain supportive and more than offset weaker corporate fundamentals that suggest a widening bias for spreads. "Credit market forces overall remain positive," the analysts said. "Based on our assessment of key factors, we feel spreads have scope to grind in from current levels." RBC's best ideas for next year include longer-dated bank deposit notes, bank non-viable contingent capital (NVCC) subdebt, non-bank credit card asset-backed paper, independent power producers, and select real estate names. They also like certain credit issued by BCE's Bell Canada, Telus, the Greater Toronto Airport Authority, Brookfield Renewable Energy Partners LP and Sun Life Financial.