By MAIMBOLWA MULIKELELA –
STANDARD Chartered Bank has advised Zambian investors to take advantage of the high yielding United States (US) corporate bonds in view of the current economic challenges.
Currently, the US corporate bonds offer an attractive investment opportunity for Zambian investors.
Standard Chartered Bank chief investment strategist group wealth management, Steve Brice said there were a number of financial investment options for the local investors on the market.
Mr Brice said in an interview that the US corporate bonds were currently very attractive because of the high yields.
“Since the Kwacha is not over bullish, we can look oversees. The US corporate bonds are a very attractive opportunity for Zambian investors to venture in both investment grade corporate bonds and high yield bonds,” Mr Brice said.
Investment-grade corporate bonds are issued by companies or financing vehicles with relatively strong balance sheets. These carry ratings of at least triple–B from Standard and Poor’s Moody’s Investors Service.
Mr Brice said for the investment grade bonds, the yields were higher than Treasury bonds and offers attractive investment option.
With regard to high yield bonds, these bonds are issued by companies or financing vehicles with relatively weak balance sheets.
He said that equities also offer good investment opportunities for Zambian businesses and that it was important to diversify exposure to income generating assets.
“There are benefits from diversifying part of your wealth into other areas. That is true whether you are leaving in the United Kingdom or Zambia because when you diversify your risks, you therefore manage your portfolio volatility,” he said.