Risks and returns: The nuances of fixed interest instruments
What should investors look for when allocating to fixed interest? Alexandra Cain considers returns and risks of the different investment options.
As returns from equities markets have stagnated, investors have turned their attention to fixed-income instruments as a means of reducing the risk to their capital while still earning a return. But not all fixed income investments are equal. Here, we look at this oft-misunderstood asset class and the potential risks and returns of the different investment options.READ MORE
Chasing hybrids to capture yield: risks vs returns
How well are hybrids understood? Weighing it up with Peter Dorrian.
Two critical factors have coalesced to spark growing interest in hybrid securities: investors are looking hungrily for yield yet are still highly wary of volatile equity markets. Companies are going to the market and issuing hybrids that offer attractive yields of 500bp and 450bp (basis point, one-hundredth of a percentage point), respectively, above the bank-bill swap rate and investors are queuing up. READ MORE