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MIND THE GAP

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

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Genevieve Cua

Genevieve Cua

Published Mon, Feb 6, 2023 · 05:50 AM
    • At current rates, cash may be seen as a strategic asset, even if not for the long term.
    • At current rates, cash may be seen as a strategic asset, even if not for the long term. PHOTO: PIXABAY

    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?

    Mind the GapFixed income markets

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