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Each week BusinessDesk and the NZ Herald’s Cooking the Books podcast tackles a different money problem. Today, it’s why bonds are the most attractive they’ve been in years. Hosted by Frances Cook.
While interest rates going up can hurt our money in a lot of ways, there’s a silver lining.
Certain investments, like bonds, start to make much more money.
So, what are bonds, and why haven’t we talked about them as much on this podcast before?
Well, it’s almost like you’re becoming a lender, or a bank. Your investment money is given as a loan to a government, or business, and they use it to expand or invest into new projects.
Just like a credit card, there’s an agreed interest rate that they’ll pay you back at, and a set date by which they have to give you back all of your money.
Because it relies on interest, well, they weren’t very fun or rewarding in the previous low-interest rate environment.
But they’re looking pretty good about now, or at least, some of them are.
For the latest podcast I talked to David McLeish, head of fixed income for Fisher Funds Management.
For the interview, listen to the podcast here.
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• Listen to the full interview on the Cooking the Books podcast. You can subscribe on iHeartRadio, Apple Podcasts, or Spotify.
'Debt becomes more like a rent payment that people get so used to paying.'