Investing in bonds

Long bonds’ long fall

Bond markets have borne the brunt of the Trump victory amid a jump in inflation expectations and high valuations. The worst falls have been in long-dated government bonds.

What to expect in 2017

The five events that will shake the world

  • Why Trump took Tsai's phone call

Bonds involve investors loaning their money to an organisation (ie a government or a company), and receiving fixed interest payments over a set amount of time. They are traditionally seen as a safe investment, and a key part of a diversified portfolio.

Bonds have always been a popular investment for British investors, for while their value can fluctuate according to factors such as interest rates and inflation, they provide investors with a regular income.

At MoneyWeek, we'll keep you up to date with what's going on in the bond markets – and whether or not it's a good time to buy them.

A beginner's guide to bonds

It's easy to become confused about bonds – the term covers a wide range of financial products. Here, Ed Bowsher explains the main types of bond.

How gilts work and why they matter

In this video, Ed takes a look at UK government bonds – how they work, why they are important, and whether you should invest in them.

How corporate bonds work

In his third video on bonds, Ed looks at how corporate bonds work, how risky they are, and whether or not they're a good investment for most people.


MoneyWeek bond watch

Government bond yields around the world started climbing again in Autumn 2010. This showed investors getting more jittery about a toxic mix of soaring state borrowings and rising inflation, and so demanding bigger returns as compensation.

Global ten-year sovereign bond yields

America's ten-year bond yield is arguably the world's most important market indicator: it sets the cost of global long-term borrowing. As with other government bond yields, it falls (prices rise) when economic growth and inflation decline, because the fixed income stream paid by sovereign debt becomes more valuable. Quantitative easing (central bank bond-buying) has lowered yields further.

Eurozone ten-year sovereign bond yields

On the edge of the eurozone, rising default fears have been sending peripheral countries' sovereign debt yields soaring. The rough line in the sand so far is 7% - when yields breach that, it looks like the point of no return.

How will this play out? Watch this page to keep a close eye on those yields – they're a great early warning indicator of trouble ahead.

Spanish and Italian three-year sovereign bond yields

Here's the chart of Spanish and Italian three-year bonds. As investors' fears about these countries' finances grew, yields spiked up sharply.



The five forecasts every investor should heed in 2017

After the political upheavals of 2016, a period of profound social and economic change is upon us. John Stepek looks at the big trends investors must be ready for next year.

Italy heads for euro exit

Italy used to be able to gain breathing space by letting its currency depreciate. Now that it’s part of the single currency, it can’t.

Investing in the era of Trumpflation

Charlie Morris tells Merryn Somerset Webb what has and hasn’t changed for investors as a result of Donald Trump’s victory, and what to do about it.

Long bonds’ long fall

Bond markets have borne the brunt of the Trump victory amid a jump in inflation expectations and high valuations. The worst falls have been in long-dated government bonds.

How Trump's presidency could boost Japanese stocks

Donald Trump’s presidency could spell the end of the global bond bull market. But there’s one asset it could be very good for, says John Stepek: Japanese stocks.

Trump’s victory marks the last gasp for the bond bull market

Donald Trump’s victory in the US election marks the end of an era, says John Stepek. Here’s what it means for the markets, and for you.

Is the bond bull market almost over?

Could this finally be the end of the bond bull market, after a 35-year run? If it is, get ready for a big shift in the investment landscape.

Do you own long-term bonds? You might want to think about selling

With inflation on the horizon, holders of long-term bonds could be badly stung by “duration risk”. John Stepek explains what that is, and why it might be time to sell.

Could Saudi Arabia’s massive debt issue mark the top for the bond market?

Saudi Arabia’s record-breaking bond sale was the biggest-ever issue of emerging-market debt. We could just have seen the top of the bond market, says John Stepek.

Steer clear of oil junk bonds

Energy companies may be in much better shape that they were, but their revival in the junk-bond market is merely inflating a massive bubble further.

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