Decision time on low-yield corporate debt

Decision time on low-yield corporate debt

Pension funds and insurers face difficult decisions as rising interest rates lessen the lure of older, low-yield corporate bonds.

09 January 2014

Is it time for fund managers to weigh up the benefits of selling low yielding bonds?

Andrew Burton, Head of Liability Management, says funds must weigh up whether to hold onto these bonds and absorb paper losses or sell them to crystallise a loss before switching into other asset classes, credit quality or duration.

Understanding what may motivate or constrain investors holding or selling their stocks of low-yield bonds is vital for any corporate which might be thinking of issuing new debt or buying back old paper.

Read the full article at RBS Insight.

Posted In


Latest news

Royal Bank of Scotland hosts ‘Easy Wins Live’ event

The event explored today’s ‘always on’ world and the pressure Scots face as they struggle to balance life inside and outside of work.

To win the fight against fraud and scams, it is vital to educate young people.

Primary school children in Currie, Edinburgh put on their detective hats last week to learn more about fraud and scams thanks to the Royal Bank of Scotland MoneySense programme. Les Matheson, CEO of Personal Banking, tells us why it’s so important to financially educate young people.

New NatWest debit cards now accessible for all customers

New card features are being rolled out from today with all cards having a notch and raised dots.

Set Tab for lightbox