Allstate Corp. (ALL), the largest publicly-traded insurer of homes and automobiles in the U.S., announced this week that it is making some major shifts in its investment portfolio that now exceeds $100 billion. The Northbrook, Illinois-based company announced that it is reducing its exposure to commercial real estate and municipal bonds in favor of corporate debt.

After a disappointing performance in 2008, corporate bonds have delivered stellar returns in the six months, yielding 13% in the second quarter and more than 9% in the third quarter according to Merrill Lynch. Corporate bonds lost almost 11% in 2008.