Reported 12 months ago
On June 27, 2024, Canada and the Eurozone began their first round of interest rate cuts, signaling the start of a global central bank interest rate reduction cycle as market rates reached their peak. To capitalize on the upcoming interest rate cuts, fund managers suggest targeting investment opportunities in non-investment grade bonds. With inflation in the US higher than expected, the market is reassessing interest rate levels, making US credit bonds less attractive with limited downward spread potential, while European and global credit bonds become more appealing. Bond investments are seen as a balanced tool amidst stock market volatility, offering attractive yields primarily from fixed interest income, presenting a rare opportunity in the bond market. It is advised to focus on medium-term bonds amid the high rate period, especially in anticipation of bond price rebounds post-interest rate cuts.
Source: YAHOO