Expert identifies tightening monetary policies as key factor for investors in 2023

By Cynthia Ezekwe

Tightening monetary policies from central bankers will most likely play a major role in determining the risks to expect in 2023 as it relates to volatility in the fixed income market.

Comercio partners, an investment banking firm, stated this in its presentation of the key factors and major risks for investors in the fixed income market  to take cognizance of them in 2023.

Steve Osho, Comercio Partners’ co-managing partner and executive director in charge of advisory, in a note to investors titled “Investment Opportunities and Risks in 2023’’, noted that while fixed income yields are expected to be slightly lower relative to the average levels seen in 2022,driven by stability in central banks’ policy rates and a decline in some cases,the possibility of higher volatility in yields could result from unpredictable escalations in the Russia-Ukraine tension or the failure of the price caps implemented on Russian oil prices.

Regarding the  equities market, Osho stated: “In the equities space, general expectation is in favour of a negative performance by most equity markets as interest rates remain high and the possibility of economic recessions increases.

He also  advised investors to properly time their entry and exit from financial markets in 2023 in order to assess investment opportunities and navigate risks during the year.

Speaking further, Osho remarked that the company  has a variety of offerings  designed to help investors take advantage of its  expertise in the various financial markets, while noting that the company is working towards the launch of  the “Comercio Partners Fixed Income Fund,’’ which is designed for the retail investment market to take advantage of various opportunities.

In addition, he stated that  Comercio Partners’ naira and dollar offerings are products investors can take advantage of to exploit the opportunities in the local and international markets.