corporate bonds

Opinion

Bond critics overlook the critical distinctions

A common error among financial commentators is to lump all bonds into the same basket, for example "bond rout set to continue", referring to the US and Australian 10 year government bonds. But government bonds do not behave in the same way as corporate bonds – for most corporate bond investors losses, if any, will be minor

Opinion

Imposters add confusion – Corporate bonds ≠ Government bonds

Since the outcome of the US Presidential election there has been plenty of talk around the rapid increase in yields on longer dated government bonds. Most government bonds are fixed rate bonds and when yields rise, the price falls. But that rule does not apply to all bonds – a sure way to spot a market commentator that does not understand the bond market

Opinion

Are equities and bonds in a ‘bubble’?

There’s been a lot of talk in the press lately about equity markets being overvalued and in a bubble. Brokers will say one thing, equity fund managers another and the media will typically find the most sensational angle for a headline

Tuesday 31 March 2015 by