Bonds are back, but how attractive is the risk-reward proposition?
For now, high fixed deposit rates for Sing and US dollar deposits over 12 months pose a high hurdle rate for bonds
Add BT as a preferred source
Genevieve Cua
THAT bonds are back, as numerous strategists proclaim, is reason to celebrate. Finally, yields have become attractive for higher quality issues, after plumbing very low levels over the past few years.
After all, even for younger investors, fixed income assets are a mainstay for portfolios despite a very poor performance last year.
But the big question is – are bonds’ risk-reward tradeoffs attractive enough given today’s fairly high interest rates for safe alternatives?
TRENDING NOW
Buyer for England striker Harry Kane’s former mansion must pay £3.4 million after abandoning deal
Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
