Fixed income is an open secret in the markets. No one pays attention and those who do see real value creation. We feel there is big opportunity for investors in fixed income space. Here’s why until April 2022, The RBI kept interest rates low which kept bond yields in check. But yields have risen as the RBI hiked interest rates. Currently Interest rates are in the 7-12 % range for A and higher rated short term corporate bonds. This makes high yield bonds (AA rated and A rated bonds) attractive. This is an opportunity for all investors. We can grab this opportunity by investing in High Quality Debt funds. Need to look at Modified duration, Quality of papers or Duration. We started dialing in Duration for our clients, will move to medium and long duration slowly. We don't want credit at this point of time but in future we will take a call. We will discuss more about duration in our next blog. Thanks for reading. We would be grateful if you could reciprocate. Blog for investors Awareness and Education purpose by Santosh G Akerkar.
Attractive interest Rates in Fixed Income – Part 2.
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