Yield-chasing raises concern
Mike Newton of Newton Ross said low interest rates were causing increased interest in high-yielding products, often without appreciation of the risks
“Kiwis and Kiwi advisers have a real orientation towards yield and that gets them into trouble,” he said.
“I think New Zealanders have got an obsession with yield and they don’t look at the underlying risks of the investment that are driving that yield. You start seeing people climbing into all sorts of things.”
Newton said investors were moving intosub-investment grae bonds and just looking at the spreads without taking into account other factors; syndicated property and equities were other popular options for those after yield.
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