Debt Funds Pivot to Interest Income as Rate Cuts Near End

Imagine you're investing in bonds, which are like loans to companies or the government.

For the past few years, you could make money when interest rates went down.

This is because when rates fall, bond prices go up, and you can sell them for more money.

But now, experts believe interest rates won't go down much further.

So, instead of trying to make money from rates falling, debt fund managers are now focusing on the interest they get from the bonds, like getting paid regularly for the loan.

Some are also looking at longer-term bonds and corporate bonds, aiming to get steady income from those instead.