RCBC says fixed income investments offer security, cash flow


    The Rizal Commercial Banking Corp. (RCBC) sees fixed income investments to continue its positive performance coming into 2021 as the economy recovers.

    Michael Ricalde, relationship manager of the RCBC Wealth Management Group, said that financial instruments that provide cash flows are important as this provide safety and security to investors during this trying time.

    “Fixed income instruments have cash flows. These cash flows are quite significant especially if your business income or employment income has been affected by the pandemic,” Ricalde said.

    He pointed out that fixed income securities can be considered safe haven assets for clients to invest in, with more investments for this financial instrument spurred further by the onset of the pandemic. Some forms of fixed income securities are time deposits, corporate bonds and government securities (GS).

    Time deposits are guaranteed by the Philippine Deposit Insurance Corp. (PDIC) of up to P500,000, while GS carry the sovereign guarantee of the issuer. Fixed income investments come in various tenors, thus, ideal for cash flow requirements. Yet it rewards the investor with better interest earnings than savings accounts.

    “Income, though important, should not be the sole factor when choosing fixed income investments or any investment for that matter. In RCBC Wealth Management, we are of the firm belief that the best investment is the one that will allow you to sleep soundly at night,” he added.


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