Wong Di Ming

The European Union’s banking giant, BNP Paribas, stood out for its stable profit growth in FY24 amid changing macroeconomic conditions.
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French banks offer a bright spot: resilient results and stable credit profiles

The country’s four major lenders reported growth in revenue and net income, with elevated policy rates helping to sustain net interest income

The US Federal Reserve is widely expected to cut interest rates in September, but it may not be the start of a typical rate cycle.
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Stay in short-duration bonds, despite Fed rate cut

Such bonds are a prudent investment choice in the current environment, but caution is advised for longer-duration bonds

Bonds provide a stable and consistent fixed income, and help to mitigate the volatility of equities in a portfolio.
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A primer on bond investing

The asset class provides a stable and consistent fixed income over a period

With inflation unlikey to fall towards policymakers' target of 2 per cent and as recession risk fades, the US Federal Reserve may not be motivated to cut rates within the year.
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Seeking opportunities in Singdollar, ringgit and US dollar bonds

Investors are set to benefit with more stability and options in the fixed income space in 2024

The writedown of Credit Suisse's Additional Tier 1 bonds highlighted the risk of loss absorption in the instrument. Developments relating to CS AT1 bonds are ongoing as investors have sought legal avenues to recover the losses.
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Strong earnings and attractive yields weigh in favour of bank bonds

Singapore bank bonds have been relatively popular this year; senior and Tier-2 subordinated bonds are attractive

Singapore dollar currency notes
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Singapore bonds outlook: Stable rates and more debt issuance

As interest rates stabilise, more corporates are likely to return to the SGD debt market for issuance; shorter-duration bonds remain attractive

For the 6-month T-bills’ yield to break past its glorious 4.4 per cent record, a sharp spike in inflation will be needed to drive interest rates higher.
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Where will Singapore Treasury bills go from here?

T-bills here generally track the path of US interest rates, but they have diverged this year. After a record yield of 4.4...

The US Federal Reserve may find it difficult to tamp down structural inflation via rate hikes over a short period.
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Bond landscape: European banks, USD and SGD bonds

European lenders are still well-capitalised; preference for higher-quality investment-grade bonds and shorter-duration Singapore government bills