The rise in interest rates is finally giving a boost to bond funds.
These savings products, stars of the 1980s, made up of government or corporate bonds, had seen their yields dwindle in recent years, until they offered, for the best-rated government bonds, negative returns.
The return of inflation, which is forcing central banks to raise their key rates, has also boosted the rates of all new bonds through a contagion effect.
An example?
US 10-year Treasuries, which yielded 0.5% a year ago, are now offering nearly 3%.
The debt issued by the best rated companies, whose remuneration was also close to zero, also jumped.
Good news for savers.
“We are coming out of a period when we were walking on our heads because sometimes we had to pay to lend money to the best signatures
,” recalls Olivier Becker, bond expert at Corum Savings.
Read also
Investments: how to invest in people
The principle of bond products?…
This article is for subscribers only.
You have 78% left to discover.
Cultivating your freedom is cultivating your curiosity.
Keep reading your article for €0.99 for the first month
I ENJOY IT
Already subscribed?
Login