What makes a Reacted Bond different
Reacted bonds combine the stability of senior debt with structures that respond to changing rate cycles — giving you predictable income without locking into long-duration risk.
Unlike plain-vanilla NCDs, the cash flows on a reacted bond reset against a benchmark, so coupon income tracks the rate environment rather than fighting it.
Where they fit in a portfolio
We see reacted bonds work best as the ballast in a barbell — paired with short-tenor T-bills on one side and selective high-yield credit on the other.
If you've been hesitant to add fixed income because of duration anxiety, this is the structure worth understanding first.
