Savers may want to rethink how they view the fixed income portion of their portfolios after the Bank of Canada issues a warning. Some corporate debt may carry an additional risk as a result of the business carrying higher debt levels. The Bank of Canada mentioned companies in the commodities sector who are borrowing heavily due to low resource prices. The extra debt comes with a greater risk that investors should be aware of when choosing their portfolio mix and investments.

“Investors who think their fixed income holdings are the safe part of their portfolios might want to think again.”

Read more: https://www.bnnbloomberg.ca/personal-investor-why-fixed-income-has-become-less-safe-1.1260539