Yield seeking amidst declining interest rates

The strategy of locking in yields in the climate of declining interest rates is still a viable one, Sammeer Sharma of Standard Chartered Bank Malaysia points out.

FOR yield seekers, the last few years have been challenging. The higher-for-longer interest rates had dampened sentiment surrounding most yield-generating products. Bonds, real estate investment trusts (REITS) and even dividend yielding stocks were affected.

Not only did these products have to compete with high bank deposit rates, their underlying businesses were affected by higher borrowing costs.