Myth #3. Bonds are too risky
Week 2 of our myth busting series
Listen to the latest podcast from FIIG
FIIGs weekly podcast
Busting the seven key myths about bonds
Bonds are always lower risk than shares in the same company, but do carry some of the same risks.
What does the investment cycle reveal? We discuss returns on offer given various levels of risk and what narrow margins between asset classes offer for investors.
Each year S&P Global releases a global report that shows defaults as well as rating movements (upgrades and downgrades). This note provides valuable information for all investors but even more so for wholesale qualified clients who can access individual bond credit ratings. Yet again the report shows that investment grade securities are a statistically low risk way to invest.
A bond is a security that pays a known income (the coupon) for a given period of time (the term) and repays the face value of the security at maturity.
Last month our resident SMSF expert, Tony Negline held a webinar about running an SMSF in 2019. There were a few questions we didn’t get to, so we thought we’d publish a note answering them, as well as a few of the most common questions from a long list