In this week’s episode of Classic Business, Michael Avery delves into the world of fixed income investing with Chris Rule, Head of Client Solutions at 10X Investments. After years of low interest rates and lacklustre returns, the bond market is presenting investors with new opportunities. Let’s explore the key takeaways from this insightful discussion.

  1. Interest rate paradigm shift – Chris Rule notes a significant shift from a prolonged “lower for longer” interest rate scenario to a rapid recalibration towards higher yields. The recent surge of 500 basis points in interest rates over 18 months makes bonds more attractive.
  2. Spreads and diversification – Investors are urged to strategically scrutinise spreads in the high yield and investment-grade sectors. Diversification across risk factors and sectors is critical to managing overall portfolio risk effectively.
  3. Real yields on offer- – South African government bonds, with real yields of 5.5% to 6.5% in the 8 to 12-year maturity bracket, present an enticing opportunity. Despite volatility tied to interest rate fluctuations, the elevated starting yield makes government bonds an appealing avenue for risk-adjusted investment.

As bonds regain prominence, investors should recalibrate portfolios considering fixed income as a driver of real returns. Considerations of spreads, diversification, and the appeal of South African government bonds, as elucidated by Chris Rule, provide guidance in navigating this dynamic investment landscape.

Listen to the full podcast below:


For a deep dive session join Chris Eddy, Head of Multi-Asset Funds at 10X Investments, who illustrates the intricacies of the 10X Income AMETF, a trailblazing actively managed ETF recently listed on the Johannesburg Stock Exchange (JSE). Designed to deliver both high levels of income and capital stability, the fund invests in a diverse array of fixed and floating-rate instruments worldwide. CLICK HERE or CONTACT US for more information.

Are you looking to get in touch? To ensure we get the most relevant person to call you back, please select whether you are a Private or Professional Investor below: