Eastern River Pty Ltd: Bonds Overtake Term Deposits as Preferred Investment Amid Falling Interest Rates

ADELAIDE, AUSTRALIA / ACCESSWIRE / December 26, 2024 /

Bonds Deliver Risk-Adjusted Returns

Eastern River observes that many investors are turning to Australian corporate bonds and diversifying into international corporate bonds. International bonds, in particular, are delivering competitive yields across key sectors such as banking, energy, and infrastructure, often outpacing term deposit returns.

Bonds, especially those issued by companies with strong credit ratings, can provide predictable income streams. These characteristics make bonds an attractive option for income-focused investors seeking to diversify their portfolios. However, investors should also be aware of the risks, including credit risk, interest rate risk, and potential loss of capital.

Stability and Wealth Preservation

With fixed coupon payments and stable income generation, bonds offer a strategic solution for investors navigating uncertain economic conditions. Eastern River emphasizes that as interest rates continue to fall, bonds are becoming an integral component of diversified portfolios, helping investors preserve wealth and secure better long-term outcomes.

"In the current environment, bonds provide a combination of yield, stability, and flexibility that term deposits can no longer match," said a spokesperson for Eastern River. "However, investors should carefully consider their financial goals and risk tolerance before making investment decisions."

Eastern River notes the growing interest in green and sustainability-linked bonds, which enable investors to achieve financial goals while supporting environmentally responsible initiatives.

Important Risk Considerations

While bonds can offer competitive returns, they are not without risks. Investors should carefully evaluate factors such as:

  • Credit Risk: The possibility of default by the bond issuer.

  • Interest Rate Risk: The potential for bond values to decline if interest rates rise.

  • Liquidity Risk: The risk of not being able to sell bonds quickly in a secondary market.

Eastern River recommends consulting a licensed financial adviser to determine if bonds are suitable for your investment strategy.

About Eastern River Pty Ltd

Based in Adelaide, Eastern River is a leading Fixed Income Specialist, offering tailored investment solutions to help clients achieve stable and risk-adjusted returns.

With a focus on corporate bonds, government bonds, and sustainable investments, Eastern River provides expert insights and strategies to navigate today's evolving market.

Disclaimer

This information is general in nature and does not constitute financial advice. Investors should consider their own objectives, financial situation, and needs, and seek professional advice before acting on any information provided. Past performance is not indicative of future results.

Contact Details

Eastern River Pty Ltd

Mrs. Sally Peters (Public Relations Officer) Email: media@easternriver.com

SOURCE: Eastern River Pty Ltd



View the original press release on accesswire.com