Why bonds are the underrated investment you didn’t know you needed

<p><strong>Each week BusinessDesk and the NZ Herald’s Cooking the Books podcast tackles a different money problem. Today, it’s why bonds are the most attractive they’ve been in years. Hosted by Frances Cook.</strong></p> <p>While interest rates going up can hurt our money in a lot of ways, there’s a silver lining.<br>Certain investments, like bonds, start to make much more money.<br>So what are bonds, and why haven’t we talked about them as much on this podcast before?<br>Well, it’s almost like you’re becoming a lender, or a bank. Your investment money is given as a loan to a government, or business, and they use it to expand or invest into new projects.<br>Just like a credit card, there’s an agreed interest rate that they’ll pay you back at, and a set date by which they have to give you back all of your money.<br>Because it relies on interest, well, they weren’t very fun or rewarding in the previous low-interest rate environment.<br>But they’re looking pretty good about now, or at least, some of them are.<br>For the latest podcast I talked to David McLeish, head of fixed income for Fisher Funds Management.</p> <p>If you have a question about this podcast, or a question you'd like answered in the next one, come and talk to me about it. I'm on <a href="https://www.facebook.com/FrancesCookNZ/">Facebook here</a>, <a href="https://www.instagram.com/francescooknz/">Instagram here</a>, and <a href="https://twitter.com/FrancesCook">Twitter here</a>.</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>