Why bonds have behaved so strangely – and you might want to own them anyway
As interest rates have climbed, interest in fixed income investments has returned – but those who’ve looked at recent returns could have been in for a nasty shock, with negative total returns for several benchmarks.
As interest rates have climbed, interest in fixed income investments has returned – but those who’ve looked at recent returns could have been in for a nasty shock, with negative total returns for several benchmarks. So why have bonds performed so poorly, and is the tide turning?
NAB Markets’ Ken Crompton joins the podcast to discuss:
- the return of yield, and what it offers investors
- why the world is ‘awash with debt’, offering a range of investment opportunities
- simple (and complex) explanations for the volatility in bond markets
- whether recent moves in rates will help to stabilise prices
- how US debt issuance is changing markets, and
- how to incorporate fixed income into your portfolio.
You can access this and previous episodes of the Your Wealth podcast now on iTunes, Podbean, Spotify or at nabtrade.com.au/yourwealth
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