Session 7: Why are investments in fixed income securities increasing in recent years & What do you know about the risks of bond investment? by Dr Yuanto KUSNADI

kat

2026-05-21 12:59:24 UTC

focusing on stocks is becoming more volatile especially with orange hair unpredictability, investing in fixed income securities can help to have a *certain* sense of security?

Lin Aitong

2026-05-21 13:00:05 UTC

bonds always brings interest to investors, while stocks sometimes may not gives dividends

Wentan

2026-05-21 13:00:34 UTC

Investments in fixed income securities have increased because interest rates are higher, investors are more risk-averse, and bonds provide stable income and diversification benefits.

However, bond investments still face several risks, including interest rate risk, default risk, inflation risk, liquidity risk, and callable risk.

Emerlyn

2026-05-21 13:00:35 UTC

Preference for bond can be due to increasing uncertainty over past few years (eg pandemic, political uncertainties, conservative economic policies like tariffs, oil-related supply problems), leading investors to prefer bonds to hedge against stocks (affected by markets). But bonds can also be impacted by interest rate.

Lim Pei Er

2026-05-21 13:00:40 UTC

There is geopolitical instability affecting macroeconomic forces and causing volatility in stock investments, so investors gravitate towards fixed income security as there is fixed payments (compared to dividends) and bondholders have preferential rights over shareholders.

Han Ying Wu

2026-05-21 13:00:49 UTC

Investments in fixed-income securities have increased recently because rising interest rates offer investors highly attractive, predictable yields, though they must still manage risks like inflation, interest rate fluctuations, and potential issuer default.

Myat Nay Chi

2026-05-21 13:00:51 UTC

Because of the economy downturn investors may want to invest in the stocks that are safe to have a protection first they estimate that the economy will become worse the risk of bond investment depends on the type of the bond they invest and the companies that invest and the interest rate fluctuations especially if the rate is with a floating rate

Zhonghong

2026-05-21 13:00:52 UTC

Due to increasing volatility in the stock market, investors are using bonds as a safer form of security. The main risks include interest rate risk, credit default risk, inflation risk

Joy Daniela Purnama

2026-05-21 13:01:05 UTC

Because investment in fixed securities is less risky and has a fixed amount of return which would be more attractive if the current economic condition is volatile. The risk of bond investment are bonds being called or the bond issuer defaulting on the bond.

Zhang Chenxin

2026-05-21 13:01:14 UTC

Investments in fixed income securities are rising due to demand for stability and diversification amid market uncertainty, while bond investments carry risks including interest rate risk, credit risk and reinvestment risk.

Chen Bailin

2026-05-21 13:01:15 UTC

Investments in fixed income securities have increased in recent years because investors prefer safer and more stable returns during uncertain world/economic conditions. The main risks of bond investments include interest rate risk, inflation risk, and default risk from issuers.

2026-05-21 13:01:23 UTC

As the world grows more turbulent and uncertain, people turn to investments with greater certainty. Default risk is the primary risk for bond investing.

YANG TING

tingyang2025 — 2026-05-21 13:01:28 UTC

Fixed‑income assets gain popularity due to market volatility, higher interest rates and risk‑aversion. Bonds provide stable regular income, hedge stock market risks, and suit long‑term investors such as pension funds and retirees.

Nicholas lim

2026-05-21 13:01:29 UTC

Since Covid equity market very volatile hence increasing demand for fixed income. key risks include interest rate risk, default risk, inflation risk and liquidity risk.

jess w

2026-05-21 13:01:40 UTC

increasing fed rate 2022-2024

Lu Yeqi

2026-05-21 13:01:45 UTC

Investors want income and stability. Fixed income can provide regular coupon income and may help stabilize portfolios when equities are volatile.

Interest-rate risk is the most important risk for many bonds. Bond prices and interest rates move in opposite directions: when rates rise, existing fixed-rate bond prices generally fall. This risk is greater for longer-maturity bonds and low-coupon bonds. Credit or default risk is the risk that the issuer cannot pay interest or repay principal. Government bonds of strong sovereigns usually have lower credit risk, while high-yield corporate bonds have much higher default risk.

Li Jincheng

2026-05-21 13:02:02 UTC

Why fixed income investments are rising

Higher yields from rate hikes make bonds more attractive. Diversifies portfolios and hedges equity volatility. Falling inflation improves real returns. Strong demand from pension/insurance funds. Bond ETFs lower entry barriers for investors

Key bond investment risks

Interest rate risk: Bond prices fall when rates rise

Credit risk: Issuer may default on payments

Inflation risk: Inflation erodes purchasing power of fixed income

Reinvestment risk: Lower future returns when rates drop

Liquidity risk: Some bonds are hard to sell quickly

FENG YUSHU

2026-05-21 13:02:02 UTC

Investments in fixed income securities have surged recently because elevated yields driven by central banks maintaining structurally higher interest rates to combat sticky inflation now allow bonds to offer genuine and durable coupon income while serving as a reliable defensive buffer against equity market volatility. However, bond investing carries distinct risks that can erode these returns. Interest rate risk means that when rates rise, existing bond prices fall. Inflation risk occurs when rising consumer prices outpace the fixed payment's purchasing power. Credit or default risk is the danger that the issuer fails to repay interest or principal. Finally, reinvestment risk arises when declining rates force investors to reinvest cash flows at lower yields.

Cheng Yu Chun

2026-05-21 13:02:13 UTC

Investors tends to look for safer and more stable returns during periods of economic uncertainty and market volatility. Therefore, fixed return is more secure and stable.

Fanghao

2026-05-21 13:02:15 UTC

Rising rates made bonds attractive again amid market uncertainty. Key risks include interest rate, inflation, liquidity and credit.

Yang Shu

2026-05-21 13:02:16 UTC

Fixed income securities have become more attractive because interest rates and bond yields are much higher than during the post-2008 low-rate period. Investors can now earn meaningful income from government bonds, investment-grade corporate bonds, money-market instruments, and short-duration bond funds without relying only on equities for returns.

Another reason is that many investors expect central banks to eventually cut interest rates or at least stop raising them. When rates fall, existing bonds with higher coupons usually become more valuable, creating potential capital gains in addition to interest income.

Xinyi

2026-05-21 13:02:43 UTC

Rising Interest Rates The Fed's aggressive rate hikes in 2022-2023 pushed bond yields to attractive levels (US 10-year Treasury ~4-5%), making fixed income compelling again after years of near-zero returns.

Flight to Safety Increased stock market volatility drives investors toward stable, predictable cash flows that bonds offer.

Institutional Demand Pension funds and insurance companies structurally require fixed income assets to match long-term liabilities.

Jesslyn F

2026-05-21 13:02:55 UTC

Portfolio diversification. Bonds offer a buffer against equity market volatility since it provides steady returns.

However it is exposed to risks such as interest rate risk and liquidity risk.

Hu Ran

2026-05-21 13:02:58 UTC

As central banks began cutting rates, bond prices rose — rewarding early investors.

Call risk as issuer may redeem early at unfavorable times.

HU ZHECHENG

2026-05-21 13:02:58 UTC

1. Why are investments in fixed income securities increasing in recent years?

Because bond yields have become more attractive after interest rates rose, so investors can earn more stable income from bonds than before.

2. What do you know about the risk of bond investment?

One key risk is interest rate risk: when market interest rates rise, the price of existing bonds usually falls, so investors may face capital losses if they sell before maturity.

Akshu

2026-05-21 13:02:58 UTC

After covid, interest rates went up, so bonds started giving better returns that's why more people began investing in them. Stocks became too risky and unpredictable, so investors moved to bonds for safer, steady income. If interest rates rise your bond loses value, if the company/government can't pay you back you lose money, and if inflation is high your returns don't feel worth much anymore.

Linkesh

2026-05-21 13:02:59 UTC

Generally, people are moving towards bonds which give a fixed income in forms of interest as a passive income with for a fixed term to meet their financial and life goals without major risks and volatility as in stocks.

The major risk for bonds are interst rate risks.

LIANG PEIYING

2026-05-21 13:03:06 UTC

Due to external factors like geological political conflicts, opportunities of earning abnormal profits are less and riskier. Risks for bond investment include long maturity which represents more unpredictable affects.

Zhang Tianrui

2026-05-21 13:03:11 UTC

Bonds offer a crucial defensive buffer against uncertainty of markets and geopolitics.

Fixed income carries risks including interest rate risk and inflation risk.

Angela

2026-05-21 13:03:16 UTC

Fixed income investing has increased because bond yields are more attractive now, so investors can earn better income while keeping part of their portfolio in a more stable asset during volatile markets.

Liu Zhemin

2026-05-21 13:03:35 UTC

The recent increase in fixed income investments is mainly driven by expected capital gains from future rate cuts, while the key risks are interest rate risk and issuer default.

Shi Mingzhen

2026-05-21 13:03:53 UTC

Investments in fixed income securities have increased in recent years because investors are looking for safer and more stable returns during periods of economic and political uncertainty. Higher interest rates have also made bonds more attractive compared to stocks.However, bond investments still involve risks, such as interest rate risk, credit risk, inflation risk, and liquidity risk. Therefore, investors should carefully evaluate these risks before investing.

Wang Shihui

shihuiwang2025 — 2026-05-21 13:03:54 UTC

I think the increase of fixed income is driven by central banks hiking up interest rates to fight inflation. After years of almost zero returns, bonds suddenly started offering great yields. Therefore investors chose this to escape stock market volatility. Also, I think the biggest risk is interest rate risk. Bond prices and market interest rates move in opposite directions. If rates go up after you buy a bond, its value drops on the secondary market. If you need to sell it early, you will take a direct capital loss.

zhao heming

2026-05-21 13:04:23 UTC

Reasons1: Expectations of future interest-rate cuts，Investors want diversification when equity valuations are high.

Reason2：Bond prices and interest rates usually move in opposite directions.

Tan MS

2026-05-21 13:04:45 UTC

Bond is like planting tree. For non callable bond, you know how much fruit it bears. For callable bonds,you r helpless when a storm uproots the tree.

Wen Weishu

2026-05-21 13:04:47 UTC

The fixed income securities give investors regular return, which is a more safe choice especially in the fast changing and uncertain environment.

DENG SHUHANG

2026-05-21 13:10:43 UTC

Bond investments are up because banks are paying much higher interest rates now. They still have risks like interest rate risk that bond loses value if newer bonds come out paying even more, default risk that company you lent money to might run out of cash and not pay you back and inflation risk that prices at the store go up too fast.