No corporate bonds? Time to reconsider
Australian superannuation investors have largely shunned corporate bonds. Post the GFC this was logical for many. Why invest in Australian corporate bonds when you could get the same yield for less risk and less hassle by sticking with Australian bank deposits? This rationale is changing, however. Low-risk short-dated corporate bond yields are now moving higher than those on deposits. Spectrum sees this as a return to “normal”. If sustained, as we expect it will be, corporate bonds may be part of the solution for those frustrated with current deposit rates. To access the full report please go to (VIEW LINK)
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