- The outlook for interest rates and inflation is turning favourable
- But our trust expert doesn't think government debt is the right way to
- He profiles three esoteric and high-yielding investment trusts
Bonds were traditionally viewed as low risk but recent events and heightened volatility have shaken investors' belief that this is still the case. Investors have endured a difficult few years due to the rise in inflation and interest rates. Some are still wary. But interest rates having peaked and attractive yields are helping to stir interest in the sector. Prospects are now looking better. Risks remain but the coming shift in sentiment will prevail. The challenge now is for investors to ensure the right bonds are chosen as the disparity in returns within the sector may still surprise.