With the central bank signalling a prolonged pause in the rate cut cycle, the duration play for bond fund investors— where declining interest rates boosts prices of longer tenure bonds—seems to have run its course for now.
Experts say investor interest could slowly shift towards the credit opportunities segment, where investors hope to capture high yield in corporate bonds and possibility of capital gains arising from credit rating upgrades. Credit opportunities funds that address this segment may witness renewed interest. Should you explore this route?
