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Some income-focused investors may like the idea of adding bonds to their portfolios for the regular interest payments they provide. However, there is risk that benchmark interest rates continue to rise in 2023 and beyond, which would erode the real return of existing bond payments. Floating rate income funds are one alternative to help manage this risk in an uncertain interest rate environment.
In this webinar, Darren Arrowsmith from CI Global Asset Management explains how floating rate income funds work and how they may help investors achieve higher yields even as benchmark interest rates rise. He also discusses some key factors to consider when researching and purchasing floating rate income funds.