2024: Prime Time for Fixed-Income
Despite higher-than-expected U.S. CPI data released last week, there has been a substantial easing in the U.S. annual inflation rate, falling from 9.1% in June 2022 to 3.1% in November 2023. While bond markets wobbled on the news, Treasuries are still pricing in numerous rate cuts this year. This underscores that the market remains steadfast […]
With Rate Cut Expectations Growing – How Should Investors Position for 2024?
Despite persistent strength in the U.S. labour market with wages rising alongside robust job creation, US 10-Year Treasury yields are currently pricing in numerous cuts to interest rates as inflation tapers. Various major U.S. banks also subscribe to this view with Goldman Sachs expecting 3 25bp cuts to the Fed funds rate in March, May, […]
The Gift That Keeps on Giving….and Giving and Giving
Christmas is a time of joy and giving, and with interest rates currently sitting at higher than we have seen over the past several years, corporate fixed-income securities are undeniably proving to be festive investments. While it’s not possible to physically wrap a corporate bond and stick it under your Christmas tree, with highly attractive […]
Will 2024 Be The Year of Fixed Income?
With higher interest rates likely to extend well into 2024 and beyond, now is the perfect time to consider fixed-income allocations within client portfolios, especially as the prospect of a recession lurks. Anaemic Growth Apart from the U.S., most economies appear to be struggling with higher interest rates and elevated (albeit cooling) inflation. This is […]
2023 Reflections – A Year in review
As we approach the end of 2023, now is an opportune time to reflect on the year that was, and plan for the year ahead. With inflation continuing to cool across most major economies, the key question for 2024 and beyond is – how long will rates remain elevated? U.S. Resilience The year 2023 has […]
Playing Defensive With Corporate Fixed Income Securities
Corporate bonds and other fixed income securities have long been favoured by investors seeking a balance of portfolio stability and investment returns. Since the Global Financial Crisis (GFC) however, ultra-low interest rates had largely removed the attractiveness of the asset class – but today, we find ourselves in a very different environment, characterised by higher […]
Cash, Money Markets and Fixed-Income – Same, Same But Different
With both money markets and fixed-income markets offering highly attractive yields, a recurring question we are frequently being asked is – which one should I invest in? Unsurprisingly, there is no simple answer given it depends on the personal needs and requirements of your clients. It’s also important to state that an investment in either […]
Corporate Bonds Vs Corporate Bond Funds – What’s the Difference?
Investing in corporate fixed-income securities like bonds and market-linked notes can be a popular strategy for investors looking to boost their income. However, with such a large universe of investment options available, it can be challenging for investors to decide which securities to include in their portfolio. As a result, some investors simply opt for […]
Corporate Fixed-Income: A Pillar of Stability in An Uncertain Environment
With ongoing uncertainty in global markets, investors are increasingly seeking refuge in assets that can provide a greater degree of stability and peace of mind. In recent times, corporate bonds and other fixed-income securities have often been overlooked in favour of more ‘glamorous’ asset classes like equities which have posted double digit returns on average […]
Reasons to Invest in Corporate Fixed-Income Securities – Right Now
In today’s highly uncertain and volatile climate, corporate fixed-income securities, including bonds, provide investors with the ability to diversity their portfolio from equities, while also securing a regular and stable income stream. In this article, we outline 3 key reasons why investing in corporate fixed-income today could be beneficial for your portfolio right now. Reliable […]