Archive | Fixed Interest

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So bond rates are not ‘lower for longer’

Historically low bonds rates have boosted asset prices, but rates are likely to keep rising from this point. While this will cause pain over the next few years, it’s a positive longer term as higher rates mean higher returns.

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Five things bond investors are doing now

In challenging market conditions, bond investors use two main strategies to increase returns: investing for longer or increasing risk. This list highlights some of direct bond investing trends right now.

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Are you in fixed interest for the duration?

Despite the global bond duration index nudging an historic peak of 7 years, portfolios can still benefit from holding exposure to fixed interest investments as long as investors are aware of the impact of duration.

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Response to Roger Montgomery on bonds

A counter-view on why bond yields are so low, and how the market can still use and interpret what bonds are telling us. Plus Roger responds that different opinions make a market, and that’s good.

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Lessons from the Volkswagen scandal

When a company fraud is uncovered there are many losers, and companies are not run to benefit bondholders. The main protection against such unforeseeable risks is to maintain a well-diversified portfolio.

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Busting the bond myth

A common observation at the moment is that if interest rates ‘can only go up’, why hold bonds? While prices fall as rates rise, there is a role for various maturities in a diversified portfolio.

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