2023 could be an excellent year for bond investment opportunities. After a tough 2022, investors are now considering bonds as a better bet than stocks. Analysts at Vanguard have suggested that 2022 was just an aberration in the balanced portfolio model. With this in mind, investors are looking for ways to get the most out of their investment.
One of the best ways to do this is to look at the current rate of return on bonds. The current rate is good, but if you hold off until just before the next change, it could be even better. Short-term bond ETFs, like ICSH, are a great way to invest in bonds denominated in US dollars. Click here to view the fund's holdings, strategy and advice.
Another way to maximize returns is to look to the past for lessons and takeaways. 2022 was a tough year for income investors, with large drawdowns and few places to hide. Credit Suisse Group AG, for example, had to pay up to raise billions of dollars in the US and UK. This was due to attractive terms keeping the lender afloat.