One of the most misunderstood asset classes is fixed interest. Most investors have a reasonable understanding of the risks associated with equity investing but fixed interest is very different. I have created a draft article for use by advisers and discusses the major risks of fixed interest investment in the context of the global financial crisis and its various effects on last year’s returns. Quite simply, interest rate risks positive credit risks were negative, duration risks largely positive, and liquidity risks frustrating!
For those interested my article can be found here … http://tinyurl.com/ceba9j