OVER the past couple of years, rising interest rates, slowing global growth and increasing market volatility spurred a scramble for safety among investors, who withdrew their capital from risky investments and parked their cash in fixed deposits.
After all, when risk-free fixed deposits yielded higher than 5 per cent during one of the most aggressive tightening cycles in over four decades, the risk-reward for taking on duration or credit risk seemed less appealing.
However, times have changed, and we are in a different environment in 2024. Almost two years since the US Federal Reserve’s first interest rate hike, we are now approaching the pivoting point, and the market expects the first rate...
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