Yield without fear: Navigating credit markets in a high-rate era

Money market balances staggeringly almost hit US$12 trillion by the end of 2025. That is capital sitting on the sidelines, earning cash returns while investors wait for clarity that may not come anytime soon. But with bond yields at their highest levels in two decades, the case for putting at least some of that money back to work in fixed income is becoming much stronger.

In this episode of Money Hacks, a podcast by The Business Times, Howie Lim is joined by Erik Keller, client portfolio manager at Robeco, and Kylie Soh, client portfolio manager and managing director at Fullerton Fund Management, for a practical conversation on how to think about bonds right now.

Why listen

• Why bond yields at 20-year highs change the risk calculation entirely  The 2022 fixed income sell-off is still fresh in many investors’ minds but Keller explains why the starting conditions today are fundamentally different and why that matters for anyone still sitting on cash.

• Why going truly global in fixed income is the most overlooked opportunity right now  Most investors have 60 to 70 per cent of their fixed income exposure in the US. Keller makes the case for European banks, Latin American utilities and emerging market opportunities that rarely make the headlines.

• What phantom yield actually is and why high-yield is not always what it seems  Not all high-yield bonds carry the same risk. The difference between CCC-rated debt and BB-rated debt over a five-year cycle is the difference between a 25 per cent default rate and less than one per cent.

• Why the most boring credit is often the best credit  Soh’s closing argument is the most practically useful thing in this episode and worth the listen alone.

If fixed income is back in style, the question is how to use it properly. Listen now.

Discover more episodes at bt.sg/podcasts. Got feedback? Email us at btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Kylie Soh, client portfolio manager and managing director, Fullerton Fund Management; and Erik Keller, client portfolio manager, Robeco

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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