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What is your client’s expectation on yield today?

Aman Dhingra of UBP

Mar 19, 2019

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1. What is your client’s expectation on yield today?

Video transcript

1. What is your client’s expectation on yield today?

Client expectations and yield never really seem to change. It's as high a yield as possible for as low a risk. So, I would say client expectations and yields, honestly, have been anchored for a long time, where clients are still looking for high single digit returns from their portfolios. What I will say is, though, that as the interest rate cycle out of the US has normalised and returns have moved up, it's more achievable, those numbers, so I think that's one real positive out of this, that we believe we can now match client expectations further, as expectations of rate hikes have diminished and the forward is actually pricing a potential rate cut. I think it's also a time when you can extend your duration risk, albeit you've got to watch the timing of that, because the curve is relatively flat, and therefore going too long is not giving you pick up, at least on a duration basis. There's still a story on the credit spread basis, so I think it's a better time to be invested in the fixed income markets. And there is that opportunity to get the yields that the clients need.