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Today's high interest rate environment has helped push bond prices down and yields higher. This means that there is now an opportunity for investors to lock in those high yields before anticipated interest rate cuts in the second half of 2024, creating the potential for strong returns both from capital appreciation and high levels of income.
We believe now is a good time to put cash to work by investing in fixed income.
Importance of bond investment
Bonds have often been seen by investors as a less interesting or rewarding option than investing in shares. They seem more complex to understand and have historically been considered a 'safer' option, mainly reserved for those in need of a regular income or added protection for their investments. However, they can also provide important diversification benefits for portfolios, as the return streams from bonds is different to equities and when equities are falling in value, bonds could inversely rise.
Please watch our short educational videos, which introduce the basics of bonds as an asset class including the relationship between prices and yields.
Introduction to bonds
Bonds can provide a regular income and help balance portfolio risk. Typically they are less volatile than some other asset classes and can be used to increase portfolio diversification.
Basics of bond prices, yields and duration
Bonds have two main sources of returns, income from interest paid and capital appreciation. A bond’s yield is based on it’s expected return to an investor, so when bond prices go up it’s yield will fall.
Risk Warning
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Cash deposited into a savings account typically offers security of capital.
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This website is intended exclusively toward professional investors in the meaning of Art. 4 para 3 letter a – g of the Swiss Financial Services Act (FinSA).
The offer and sale of collective investment schemes are subject to the respective national laws and other statutory regulations of the individual countries. We ask for your understanding that access to the following website is only permitted to professional investors within the meaning of Art. 4 para 3 letter a – g FinSA and who have their permanent residence in Switzerland and meet the additional requirements set out in the terms.
a) Financial Intermediaries as defined in the Banking Act of 8 November 1934 (BankA), the Financial Institutions Act of 15 June 2018 (FinIA) and the Collective Investment Schemes Act (CISA) b) Insurance Companies as defined in the Swiss Insurance Act (ISA) c) Foreign Financial Intermediaries and Insurance Companies subject to prudential supervision as mentioned in a) and b) d) Central Banks e) National and Supranational public entities with professional treasury operations f) Occupational Pension Schemes with professional treasury operations g) Occupational Pension Institutions providing professional treasury operations h) Companies with professional treasury operations
This website is not intended towards professional clients who are not institutional clients according to Art. 4 para 4 FinSA and who wish to declare to be treated as retail clients according to Art. 5 para 5 FinSA (opting in).
In case none of the above criteria applies to you or the institution you represent, you are not allowed to visit this website.
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