Investing in bonds

The assets to buy now – September 2016

Asset allocation is at least as important as individual share selection. So where should you be putting your money? Here’s our monthly take on the major asset classes.

MoneyWeek magazine

Latest issue:

Magazine cover
Safe harbour

The Nordic model has been good for investors

The UK's best-selling financial magazine.
Subscribe now

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.



Bond bubble hisses air

Events in the bond markets this week are a reminder of how overstretched bond prices are and how investors are unlikely to make money from them.

No matter which way the bond bull market ends, it’s going to get ugly

The great bond bull market may have finally hit a turning point. And there are just two ways for it to end, says John Stepek: badly, or very badly.

The assets to buy now – September 2016

Asset allocation is at least as important as individual share selection. So where should you be putting your money? Here’s our monthly take on the major asset classes.

Zero-coupon perpetual bonds: this April Fool is no joke

When the US Treasury considered zero-coupon perpetual bonds years ago, it was greeted as a joke. Not now, says Edward Chancellor.

One more reason to hold gold

Forget about central banks not having a plan, says Cris Sholto Heaton. Investors will come to realise they haven’t got a clue.

Bonds move in mysterious ways

Contrary to custom, bond and stock prices are hitting records at the same time in America.

The assets to buy now – July 2016

Asset allocation is at least as important as individual share selection. So where should you be putting your money? Here’s our monthly take on the major asset classes.

Abby Joseph Cohen: optimistic on Wall Street

Wall Street strategist Abby Joseph Cohen is keen on the US economy. But the bond market is another matter.

How low can bond yields go?

Nobody buys bonds at these levels thinking they are attractive. So who is buying, asks Andrew Van Sickle.

South Africa avoids junk status – for now

Last week S&P threatened to downgrade South African debt to junk status. In the event, it didn’t. But a downgrade looks “almost inevitable”.

Showing page 1 of 47