Beijing Railway takes 1 year fixed deposit rate as the benchmark, and some bonds change with 1 year shibor (Shanghai Interbank Offered Rate) as the benchmark interest rate. Analysts pointed out that the interest rate of time deposits often lags behind inflation, while shibor's benchmark interest rate is more market-oriented and more sensitive to inflation. "If inflation expectations rise again in the future, floating rate notes based on shibor will perform better.
It is expected that whether floating rate notes is the right time to invest in floating rate notes can be considered when raising interest rates in the future. According to the report issued by China Merchants Securities, in view of the background that the global interest rate cycle has bottomed out and inflation expectations are rekindled, investors should actively pay attention to the defensive value of floating-rate bonds. "Although the interest rate hike cycle will not come soon and the absolute income of floating-rate bonds is not high, the value of floating-rate bonds will be reflected when the bond market is about to reverse."
The reporter interviewed many analysts. They generally think that now is not the best time to invest in floating rate notes. "floating rate notes is relatively good in the interest rate hike cycle," a bond analyst pointed out in an interview. "At present, it is only less likely to cut interest rates, but if there is no upward trend of interest rates in 1 year, the value of floating-rate bonds will be difficult to reflect."
Qu Qing, a bond analyst in Shen Yin, believes that the key to floating rate notes depends on personal judgment on inflation expectations. If investors expect to raise interest rates soon, they can consider buying floating rate notes. "But at present, it can only be said that there is not much room for interest rate cuts, and it is unlikely to raise interest rates soon. It is best for investors to pay close attention to changes in interest rates before making judgments. "