What is the relationship between bonds and interest rates?

Which bonds are most attractive based on their duration in a rising interest rate scenario? At FundsPeople Learning, we analyze the advantages of investing in bonds and the methods that can act as protection in this type of context.

The first thing to be clear is that interest rates and bonds are related in a way, When interest rates go up, bond prices tend to go down, and vice versa. Once this question is clear, which bonds are more attractive in the bullish scenario?

Advantages of investing in bonds

What is the benefit of fixed income from diversification? This type of asset has traditionally been used as a portfolio diversification componentAnd In particular against stock market risks. With a wide range of assets to choose from, fixed income is also attractive to investors looking to be rewarded for taking on additional amounts of risk.

In an environment of rising central bank interest rates, the role of fixed income in investors’ portfolios is now in the spotlight. How can you boost performance without increasing risk? Which approach can protect in a high rate environment? We disassemble all the keys in a file New FundsPeople education moduleAnd Fixed Income: How to Manage New Interest Rates and InflationAnd which cooperated with RBC BlueBay Asset Management.

In addition, this course, aimed at professional investors only, is valid for 1 hour of training towards obtaining an EFPA Spain Certificate or 1 CPD Credit from CFA Society Spain, after correctly answering the associated test.