• Attractive Debt interest rates
Liquidity tightening for inflation control has led to an interest rate hike cycle. Interest rates are now at a decade high; a rate cut cycle likely to follow from 2024.
• ‘Short-end’, the sweet spot-on yield curve
Spreads at the short end of the yield curve is much higher. 1 year rate is offering similar returns compared to the 7–10-year rate; with the advantage of limited duration risk.
• Investment opportunity in AAA rated bonds
AAA bonds continue to provide higher yields compared to traditional savings instruments. Spreads between AAA bond and current repo rate are well positioned and delivering higher returns; while maintaining a low credit risk profile owing to their high-quality.