MELBOURNE, AUSTRALIA – 21 July 2020
INVESTORS SEEK HIGHER FIXED INCOME IN A SEA OF LOW INTEREST RATES
Investors are looking for new ways to get meaningful returns on their investments in the midst of the global pandemic and beyond.
The global pandemic has driven interest rates down even further from the historic lows of the 2008/09 financial crisis. Since interest rates are bottoming out, this could lead to negative interest rates in many parts of the world, as is already the case in a number of developed countries.
Rates are set to be low for some time as the central banks consider quantitative easing tactics to see society through the global pandemic.
“Money printing from central banks, along with the traditional banking models, have left investors needing higher income for their investments, in part due to the vast amount of cheap wholesale capital available to institutions. The impact of such policies forces investors to seek income from non-bank products at competitive rates,” said a representative from bespoke fixed income company, Australian Property Bonds.
“The economic re-build of Australia will be driven by those with assets to leverage. We are offering investors the ability to become financiers of business activity by backing first mortgage security against Australian real estate.
“No longer do investors have to be property owners and pay out any costs associated with the property, instead, they can gain an income through our bespoke platform,” said the Australian Property Bonds representative.
