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10 yield plays that pay double the RBA cash rate. Should you buy?

10 yield plays that pay double the RBA cash rate. Should you buy?

Listed private credit companies are garnering attention as the Reserve Bank prepares for another rate cut.

Private credit listed investment companies offer high interest rates but come with risks that other credit products do not. Simon Letch

With the Reserve Bank expected to cut rates for a third time this year on Tuesday, readily available credit products with headline yields of as much as 10 per cent will look increasingly attractive to many investors.

After all, the options for yield-hungry investors are dwindling. Returns from term deposits are marching ever downwards, two-year Australian government bond rates have dropped 100 basis points to 3.18 per cent in a year, and the yield on the S&P/ASX 200 Index is trading near historic lows at 3.4 per cent.

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Andrew Hobbs
Andrew HobbsWealth reporterAndrew Hobbs covers self-managed superannuation funds (SMSFs), financial planning, retirement, inheritance, tax, personal finance and, sometimes, the Perth Bears. He has been a financial journalist for 30 years, previously at Bloomberg and AAP.

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Original URL: https://www.afr.com/wealth/investing/these-10-assets-pay-double-the-rba-cash-rate-but-should-you-buy-20250625-p5ma9p