What to do about government bonds? The yield on government bonds is historically low, while the risk is high. In the event of rising inflation, they offer little or no buffer. Nevertheless, we shouldn’t ban them completely from multi-asset portfolios just yet.
Just recently, the following graph hit my Twitter timeline (courtesy @TihoBrkan). It shows that the yield on Eurozone high yield bonds is now equal to the yield on the 10-year […]
It took a while, but Greece no longer dominated all the headlines this week. The Greek government handed in a ‘to-do list’ that was enough for Mr. Dijsselbloem to work […]
It long seemed endless, the powerful rally in high yield bonds. But investors grew more cautious in recent weeks, pushing the prices of high yield bonds down. The positive correlation […]
This week, I posted a tweet about the extremely low levels of volatility in the bond markets. The main message of that tweet was that we are experiencing a rare […]
Bond yields have risen significantly in the last two months. Between the beginning of May and June 24 the 10-year Treasury yield increased by more than one percent. Since then […]
Investor interest in emerging market debt has increased massively over the last couple of years. Traditional bonds are not what they used to be. Peripheral countries in Europe are by […]