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.