Investing in the debt of companies, also called credit fixed income, has the potential to offer benefits. Typically the returns corporate bonds offer is higher than those from cash and government bonds over time and may provide diversification. Credit is a wide-ranging area and detailed thought and analysis is required to make sure each investment opportunity stacks up.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
A rise in interest rates generally causes bond prices to fall.
A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
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