Table of Contents
2022 has been a challenging year for investors. The S&P 500 is down about 22% to date while bonds – typically seen as ballast for equity-heavy portfolios – have dropped about 14%.
In the midst of such volatility, many investors have flocked to the safety of cash and cash-like instruments such as Treasury bills (T-bills) and
Singapore Savings Bonds (SSB).
And why not? The yields on both assets have been increasing amid
rising interest rates. For instance, the latest SSB issue offers a 10-year average annual return of 3.21% while the 6-month T-bill issued in September reached a 3.32% cut-off yield.
The risks of playing it too safe
SSBs and T-bills offer capital protection and guaranteed returns, attributes which are valuable in these uncertain times. No one doubts their place as part of a well-diversified investment portfolio....
