Insights into bond investing

Goh Wee Peng, fixed income CIO for Aminvest talks about :

- Massive liquidity in the system;

- More rate cuts in expected in eurozone and various Asian countries;

- Weak growth outlook to cap interest rate upside;

- Bonds still offer decent returns due to yield premiums over Malaysian Govt Securities and fixed deposits;

- Fixed income investors shouldn't time market but may look into lower grade bonds and high yield stocks in the search for yields;

- Regional local currency bonds may be a good idea-Net of currency effects may be able to achieve overall yields of 8-9% in certain countries;

- Foreign inflows into MGS is strong to take advantage of the firm ringgit.