This is how rich customers invest their money in 2023

Porsche at the UBS headquarters

Rich customers are realigning their securities accounts.

(Photo: Bloomberg)

Frankfurt After the key interest rate hikes by the central banks and the resulting collapse in bond and share prices, the wealthy customers of the major Swiss bank UBS are realigning their securities accounts. They are more exposed to interest rate securities at the expense of equities, but remain true to the high proportions of alternative asset classes.

Real estate, which is also evident from other asset managers, is falling in favor with wealthy investors. The rich, together with their advisors, are trying to cushion risks and at the same time take advantage of new opportunities for returns.

“High-quality bonds have become much more popular with investors. Further interest rate hikes are already largely priced into the prices, so that 2023 will be a good year for government bonds and corporate bonds with good credit ratings. High-yield securities should be avoided for the time being, the risks here are too great,” says Maximilian Kunkel, chief investment strategist for UBS in Germany. High-yield securities are typically issued by companies with lower credit ratings.

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