High Performing Fixed-Income Investments at Yield Bridge
Fixed income securities, or bonds, are issued by governments or by companies as a way of raising capital. They’re technically an ‘I.O.U’ - designed to provide a regular stream of income, typically at a fixed rate, and over a specified time frame.
INNOATIVE FIXED-INCOME SOLUTIONS
Blending a fresh, innovative approach with decades of experience, we source fixed-income investment opportunities for institutional and qualified clients.
Over the last 30 years, fixed-income investment strategies have gradually gained traction as a means of diversifying institutional portfolios. More recently, they’ve attracted increasing interest from retail investors.
The reason for this surge in popularity? Investors are looking beyond the traditional asset classes of stocks and bonds to diversify income and boost returns – particularly amidst the current volatility of global markets and interest rates. In addition, the fixed-income market has become increasingly transparent – with better investor protection and improved liquidity.
If you’re looking for potential tax benefits and want to diversify your portfolio, high-quality fixed income investments could be an option for you. Speak with one of our Asset Managers today to understand what product best fits your requirements.
DUE DILIGENCE
Our dedicated team research fixed-income investments across a broad variety of asset classes - identifying compelling opportunties that currently encompass litigation funding and ESG investments.
We narrow our search for high-performing investments using the following criteria:
100% TRACK RECORD
We work with companies that have never defaulted on a payment.
ROBUST INVESTOR PROTECTION
Security trustees, performance guarantees and debentures, for example
FINANCIAL HEALTH
Significant assets, creditworthiness and ability to generate growth
EXPERIENCED BOARD OF DIRECTORS
We’re looking for boards with 100+ years’ combined experience
WHAT ARE THE RISKS ASSOCIATED WITH FIXED-INCOME?
There are three main risks associated with fixed-income as listed to your right. The benefit being these are visible and researchable anomalies that any accredited investor can easily understand. You could manage these risks by diversifying investments within your fixed income portfolio.
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Need clarification regarding your security? Nearly all our products include MTCP (Multi Tier Capital Protection), this means your initial capital has several layers of security against underperformance.
1. INTEREST RATE RISK
When interest rates rise, bond prices fall, meaning the bonds you hold lose value. Interest rate movements are the major cause of price volatility in bond markets.
2. INFLATION RISK
Inflation is another source of risk for bond investors. Bonds provide a fixed amount of income at regular intervals. But if the rate of inflation outpaces this fixed amount of income, the investor loses purchasing power.
3. CREDIT RISK
If you invest in corporate bonds, you take on credit risk in addition to interest rate risk. Credit risk (also known as business risk or financial risk) is the possibility that an issuer could default on its debt obligation. If this happens, the investor may not receive the full value of their principal investment.
Key Takeaways
Good quality fixed-income vehicles focus on generating predicable income while preserving capital. The market will perpetually offer a variety of products with a range of risk profiles. Strict due diligence is always encouraged, particularly with private credit opportunities.
01
Income
Fixed income investments could help you generate a steady source of income. Investors receive a fixed amount of income at regular intervals in the form of coupon payments on their bond holdings.
02
Low Risk
Diversification from stock market risk. Fixed income is broadly understood to carry lower risk than stocks. This is because fixed income assets are generally less sensitive to macroeconomic risks, such as economic downturns and geopolitical events.
03
Duration
Short duration strategies may be suitable for those looking to reduce the effects of a change in interest rates, or plan for financial commitments in advance. Fixed-Income essentially provides a dividend without the exposure to variable change on the principle.
04
Multi-Asset Class
Fixed-Income spans across the breadth of all asset classes. Using a multi-asset class approach can enhance the income profile of a portfolio through flexible, diversified, and targeted investments - while maintaining capital preservation.