Bonds - Between a rock and a hard place

There is little doubt that owning bonds at the moment represents a high insurance premium against equity market risk, in the face of low yields and high inflation. Yield rises since the start of the year have resulted in small capital losses. The alternatives are few and far between and often simply introduce additional risks. Investors have to keep paying the premium or surrender the policy. We provide a few pointers to help rationalise the issue.

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