In Nigeria’s current high-rate environment, fixed-income investors are facing a shifting landscape. With repeated rate hikes aimed at curbing inflation and stabilising the naira, understanding how these changes impact bond pricing and fund values is essential. This article unpacks the key relationships between interest rates, bond prices, and investment performance.

Through real-life scenarios and simple analogies, we explore how rate hikes lead to declines in bond prices and introduce concepts such as mark-to-market valuation and interest rate risk. You'll also learn how specific instruments, such as coupon-bearing bonds, zero-coupon bonds, and fixed-income funds, react to rate changes differently, and what this means for your portfolio strategy.

Whether you're an experienced investor or just starting to build your fixed-income foundation, this article offers actionable guidance. From using short-term securities to adopting a laddering strategy, to leveraging Coronation’s expertly managed Fixed Income Funds, you’ll find practical tips to protect capital and earn steady income, no matter where rates are headed.

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