With government bonds yielding around 1%, term deposits paying around 2%, and cash accounts often paying nothing, it’s no surprise that investors are looking in unconventional places to find higher yields. However, Charlie Jamieson, Chief Investment Officer at Jamieson Coote Bonds, warns investors on the risks of blindly moving up the risk scale, without pausing to reflect on the potential implications for portfolios.
“There’s a lot of illiquid product on offer, or lower credit quality … There does seem to be some complacency around some of those liquidity profiles. We’ve already seen some credit funds internationally be gated and frozen. That’s happened well ahead of any material problem.”
Watch this short video to hear Charlie’s take on why preservation of capital will be critical in the period ahead.
More from Charlie Jamieson
This video is an excerpt from a longer interview with Charlie. Read an edited transcript of the full interview here.
Avoid getting caught in the trap
As we continue to face volatile market periods, bonds will offer the stability of principal and income, as investors seek the highest quality investments. Click contact below to find out more or visit Jamieson Coote Bonds website for further information.