Investors are being advised by UBS Group to consider moving excess cash into high-quality fixed income assets due to the expected decrease in cash returns caused by the anticipated rate-cutting cycle.

Solita Marcelli, the chief investment officer for the Americas at UBS Global Wealth Management, has stated that investment-grade (IG) bonds are currently considered attractive. Marcelli also suggests that investors should explore diversified fixed income strategies, which may involve selectively investing in higher-yielding segments of the asset class. This approach aims to increase portfolio income in response to changing market conditions.