FT Wealth Investors’ flight into cash and government bonds during the global financial crisis and economic downturn gave security but little in the way of returns. As markets and economies begin to recover, the challenge is to find assets that provide better returns but are still reasonably defensive.
Some wealth managers are concerned that shell-shocked clients are clinging to their cash holdings long after it is sensible to do so. Sovereign bonds, for example, regarded as near-cash proof because they are safe and liquid, are looking unattractive compared with their riskier cousins, corporate bonds.
