Corporate bonds: not as risky as you think

What’s more dangerous to own, company debt or government debt? Once, your instinctive answer might have been company debt. But a glance back in history might make you rethink.

Consider the riskiness of owning a million francs’ worth of shares in a French champagne company in 1928, compared with that of owning the equivalent value in long-term German bonds, says John Dizard in the Financial Times. If you’d gone for the shares, they would be extremely valuable today. The bond certificates and interest coupons would not be.

You might think this can’t happen again. But “almost all [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Walking out on the banks

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

Get the latest tips and investment opportunities from MoneyWeek magazine: Claim 3 FREE Issues HERE