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Low govt bond returns push investors to corporate credit
But the higher yields come with greater risk, as bond holders can lose their investment if firms go under
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The low fixed income returns have pushed investors and savers away to higher-yielding corporate bonds and other alternative investments.
PHOTO: ST FILE
Returns on sovereign bonds have dropped to historical lows worldwide as central banks cut benchmark interest rates to help their economies recover from the coronavirus-driven recession.
The low yields - which mean higher bond prices - are good for companies and governments struggling to keep their heads above water as they can raise much-needed funds cheaply.
