If the yield curve reverses and investors are willing to accept lower rates on long-term debt than short-term, it bodes ill for the economy, says John Stepek.
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”.
With more and more government debt trading on negative yields, the bond bubble continues to swell. John Stepek looks at what could prompt it to burst.
Investors need not worry about who is or isn’t in charge of eurozone governments, says Matthew Lynn. As far as the markets are concerned, it makes no difference.
There are two main risks when buying a bond. Matthew Partridge explains what they are, and how “duration” can help tell you if it’s a risky bet.
Ireland has issued a 100-year bond priced to yield 2.35%. But as this chart of British gilt yields over three centuries suggests, buying it might not be a terribly good idea.
In the past decade, 17 African countries have issued a dollar-denominated bond. But now the “bond bonanza” is subsiding, and Africa isn’t looking quite so creditworthy.
Expect the Bank of Japan to cut interest rates again and increase its monthly government bond purchases.
In the latest of our beginner’s guides to investing, Merryn Somerset Webb explains the basics of bonds.
Japan’s new ten-year government bond carries a negative yield. It’s guaranteed to lose investors money. John Stepek looks at how we’ve come to this, and what could burst the bubble.
Investing in bonds usually means piling into a managed bond fund. But as Bengt Saelensminde explains, that makes little sense in today’s markets.