What Fixed Income Means in 2026: Rethinking Stability in an Uncertain World

For many Singaporeans, the idea of fixed income investment brings to mind Singapore Savings Bonds, treasury bills (T-bills) or fixed deposits. 

The concept is a simple one. You lend your money to an issuer, which can be the government or a company. They will pay you interest either in one lump sum at maturity or at regular intervals, known as coupon payments, until your capital is fully repaid.

The returns may be modest, but they come with benefits you can count on: a predictable stream of income to supplement your finances. 

In 2025, that stability has become even more precious, with declining global interest rates, geopolitical tensions, and market volatilities.  

This article will explore how Singaporeans can position themselves for stronger returns and greater stability through BigFundr’s low-risk fixed income instrument, even in a world where economic uncertainties and market shifts will always be a concern. 

The Uncertainties of Fixed Income Investing 

Corporate bonds, Real Estate Investment Trusts (REITs), and money market instruments; these fixed income investments provide predictable interest payouts in exchange for locking in your money for a certain period. 

Fixed income offers clear advantages:

• Predictable returns with set payment schedules.
• Lower volatility compared to other investment methods. While fixed income vehicles are still impacted by market volatility, they can be structured in ways that provide more stable rates.   
• Helps stabilise and diversify your portfolio.

But it also comes with trade-offs that investors must contend with. Standard fixed income vehicles: 

• Provide lower yields than other high-risk, high-reward investment methods, such as stocks trading. 
• Are vulnerable to inflation rates, which can shrink the real returns you receive. 
• Keep your funds tied up, with limited liquidity in cases where you would prefer to exit early. 

The Unpredictable Global Landscape of Fixed Income Investing Today

The cons of fixed income investments seem more stark today, as investors grapple with a landscape shaped by inflation pressures, shifting monetary policies, and global tensions. 

1. Inflation and Shifting Interest Rates

Interest rates worldwide remain volatile, as central banks try to cool inflation without stifling growth. This is done by raising interest rates sharply to keep prices under control. When inflation eases, central banks may be unsure how fast or how much to cut interest rates, because there is the risk of inflation spiking once more. 

In Singapore, that volatility is transmitted quickly because the Monetary Authority of Singapore (MAS) runs an exchange-rate–centred framework that manages the SGD nominal effective exchange rate (S$NEER) rather than targeting a domestic policy rate. In a small, open economy like Singapore with free capital flows, that means local interest rates are largely shaped by global rates and FX expectations, not by MAS “hikes” or “cuts.”

So, when the US Federal Reserve or European central banks move unexpectedly, the effects show up here through two channels:

• The rate channel, where SGD benchmarks like SORA tend to drift with global funding conditions. 
• The FX channel, where the SGD’s path influences imported inflation and, in turn, MAS’s S$NEER stance. 

For savers and income investors, the interest–exchange-rate linkage has practical consequences. 

If the Fed eases, bank fixed-deposit rates in Singapore typically soften with a lag as wholesale funding costs fall. This, in turn, causes yields of T-bills and government bonds to fall. 

Conversely, when global rates rise or the SGD weakens, local funding costs tend to firm, lifting SORA-linked coupons and pressuring bond prices.

Bottom line: because Singapore targets the exchange rate, the SGD and local interest rates tend to move together. Changes overseas can quickly affect whether it’s better to lock in a fixed deposit, buy T-bills/SGS, or hold cash.

2. Geopolitical Instability

Conflicts in Eastern Europe and the Middle East are still unsettling trade and energy markets. As ships continue to avoid the Red Sea, this adds roughly 7–14 extra days on Asia–Europe routes, which in turn keeps fuel use and costs elevated.

Wars and instability disrupt global trade routes and drive up commodity prices, especially oil and raw materials. When energy and logistics costs spike, companies face tighter margins and uncertainty over supply chains. 

This causes a chain reaction, which triggers companies to begin cost-cutting measures such as reducing jobs and cancelling projects. All of which eventually filters down into reduced investor confidence, which further drives market volatility and uncertainty. 

For fixed income investors in Singapore, geopolitical instability leads to market volatility and yield fluctuations as rates adjust to new expectations. Fixed income holdings' values may thus fluctuate in response to these geopolitical and economic shifts.

3. Currency Fluctuations

In such an environment, currency fluctuations are an added worry. A Singaporean holding foreign investments in international currencies can see their asset value plunge with just a minor shift in exchange rates.  

The U.S. Dollar tends to strengthen in value during periods of global uncertainty due to its status as a dominant global reserve currency and a safe haven. As a result, the value of overseas investments in other currencies, such as the Euro or Yen, can decline sharply when converted back to Singapore Dollars.

When assessing your portfolio in Singapore dollars, the value of those overseas investments can fluctuate simply because of currency movements, even if the assets themselves have not changed in value. This means that even a small exchange rate movement can compromise interest gains. 

For example, imagine you have invested S$10,000 in U.S. bonds. By the end of the year, the bonds perform as expected, but the Singapore dollar strengthens by 5% against the U.S. Dollar. 

When you convert your returns back to SGD, your total value would drop by about 5%.

On the other hand, if the U.S. Dollar strengthens instead, your investment could be worth more in SGD terms, but such gains are unpredictable and beyond an investor’s control. 

Takeaway: FX swings can erase or amplify otherwise solid bond returns, which adds an element of risk to what would normally be a stable investment.

Put together, these factors make it harder for fixed income investors to enjoy the stability the asset class was once known for. 

BigFundr Deals: A Stable Way of Approaching Fixed Income in 2025

All this talk of risks may seem discouraging. But this doesn’t mean you have to abandon fixed income investment vehicles entirely.  

While no investment method is ever fully hazard-free, we offer a way to mitigate those risks. 

In essence, BigFundr Deals are private credit loans backed by international real estate. This is an investment type that typically isn’t accessible to the average person, as it’s often limited to institutions or those with large enough capital to invest. We bridge that gap by making such fixed income investments available to everyday investors, allowing them to participate in a once-exclusive asset class. 

At its core, our fixed income opportunities are simple. Funds from investors are pooled and given out as private credit loans, which are fully secured by real estate assets in trusted international markets. As borrowers repay the interest on their loans, it is then disbursed to our investors as investment returns, paid monthly.

Fixed income is known for being a rather hands-off approach to investing. However, our team takes proactive and thorough steps to ensure the security of every single opportunity we provide. 

1. Rigorous Borrower and Asset Assessments

Every Deal on BigFundr undergoes a thorough diligence process to protect investor capital.
We only partner with developers and borrowers with proven track records and solid financial standing. Their repayment conduct, liquidity position, and creditworthiness are reviewed in depth before a loan is approved.

Additionally, all collateral properties undergo stringent legal, financial and market assessments to ensure property valuations are well-supported, risk-mitigation is robust and legal and financial recourse is in place. This gives us confidence that our investors' interests are safeguarded as we provide above-market returns on their capital.

2. Loan-to-Value (LTV) Below 70%

We maintain a healthy buffer between the property's value and the total loan value in the event of a borrower default. A low LTV means our loan amount is well below the property’s current valuation, giving us a strong buffer in the event there is a decline in valuation, allowing us to recover our investors' capital.

3. Prime Assets in Growth Markets

We choose primarily developments located in capital cities and regions identified as growth corridors. For instance, our current Deals are backed by Australian residential projects in regions with strong population and housing demand, ensuring stable long-term value. We always secure multiple exits to ensure we have many ways to extract investors' capital from any given Deal should the need arises.

4. Senior Lending Position and Legal Protection

We only fund developments where we operate as the Senior Lender, meaning we hold the first legal charge on the collateral property.

In simple terms, a first legal charge gives us first priority to recover funds if the borrower defaults. The property cannot be sold or transferred without settling BigFundr’s loan first, ensuring that our investors are repaid before any other creditors.

5. Institutional Liquidity Backing

We partner with large, established fund management companies in each market. These companies, each managing S$1–3 billion in assets, pre-agree to repurchase loan notes from us at a fixed time if required.

For investors, this means:

• You have a defined liquidity pathway, even before the Deal matures.
• There’s an additional layer of financial backing for peace of mind. 
• Our ability to exit won’t be reliant on unpredictable market demand.

An institutional safety net like this is rare in many fixed income structures, making it a notable feature of our reliable investment model. 

BigFundr: Fixed Income Opportunities Built for Your Peace of Mind

From security measures like careful borrower screening to currency protection, our BigFundr Deals give Singaporean investors the ability to enjoy stable returns without losing sleep over the potential risks. 

We keep the right safeguards in place so your fixed income investment works for you, not against you. With returns that consistently exceed market averages, we offer a more efficient way to grow your wealth securely.

Getting started is simple. All you need to do is sign up as an investor, browse through our curated investment opportunities, and select the one that best aligns with your financial goals. 

Once you’ve made your choice and completed the checkout process, you can sit back and enjoy the steady monthly returns from your international real estate investment.

Learn more about our investment model and sign up to start investing today!