for questions that relate to government bonds. It is recommend you use a country tag or state what country you are referring to. A government bond is a bond issued by a national government, generally promising to pay a certain amount on a certain date, as well as periodic interest payments.
6
votes
1answer
86 views
Why did one-year notes pay more than 10-year notes during the 1980's crisis?
Why did one-year notes pay more than 10-year notes during the 1980's crisis? During the early 1980's, one-year T notes paid more than the 10-year T note, which implies that nobody wanted to buy the ...
6
votes
1answer
107 views
How much in inflation protected securities (TIPS) should I buy?
I'm wondering whether it's worthwhile to allocate some of my bond portfolio in the Vanguard TIPS fund. I plan to work until about 2040, and I prefer (efficient) risk over return. I plan to buy and ...
2
votes
1answer
40 views
How to figure out interest received from 'cash and cash equivalents' in a balance sheet?
Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents.
I want to know more about cash and cash equivalents. I understand that cash and cash ...
1
vote
1answer
46 views
How to find out if a company has purchased government (or other) bonds?
Looking at a company's income statement, balance sheet, and cash flow, is it possible to find out if a company has given out a loan to a government or to another business, i.e. government/corporate ...
10
votes
4answers
454 views
Why would anyone buy a government bond?
In my country, the interest rates on government bonds are currently 2 - 3%, but I have money in a term deposit at the bank which earns 4% interest. I don't understand how this can be possible. Why are ...
2
votes
0answers
40 views
How does S&P schedule reviews of sovereign credit ratings
It's not too hard to find current sovereign credit ratings, but I need more info. I believe that the major ratings agencies schedule reviews of different countries (or banks, etc.) so what I'd like ...
2
votes
1answer
104 views
How can I cash out US government savings bonds?
My grandmother gave me a series of US government savings bonds before she died. I have the ID numbers, but not the physical bonds themselves. The bonds are in my name; I received them as gifts.
Will ...
1
vote
1answer
2k views
what is the meaning of allowing FDI in Insurance and pension funds
I want to know with respect to following news
http://www.hindustantimes.com/business-news/WorldEconomy/Pension-insurance-get-FDI-boost/Article1-939798.aspx
...
3
votes
1answer
323 views
Can someone explain how government bonds work?
Can someone explain, for irresponsible investors, the maths behind government bonds as presented here?
I am assuming that the "coupon" is the yearly interest paid on the original price. Since this ...
13
votes
2answers
464 views
Why would I buy a Bond at a Negative Interest rate?
I read recently that France is selling bonds at Negative Interest Rates. I understand why this is beneficial for France, but why in the world would I pay money to let someone hold my money?
1
vote
1answer
146 views
Governments Debt/GDP and Budget (deficit/surplus), how to read the figures to decide what bonds to buy?
After searching for hours on Google I found these two great tables (theya are also sortable):
list of Government Debt to GDP ratio
list of Government budget (I took hours to find this because I ...
1
vote
2answers
179 views
How to bet on Japanese government bonds interest rate going up in the coming years?
Is there a way for a private individual investor to bet on Japanese Government bonds interest rate going up in the coming years?
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votes
4answers
344 views
10-year real Treasury bond yield: How can it be zero, or negative?
How can the 10-year real Treasury bond yield be zero, or negative?
That's like giving out money for free, right? Does that mean that people expect the value of the dollar to go up (deflation)?
0
votes
3answers
140 views
Treasury Bonds, compounding at new interest rates
this is more a question about bonds in general than just Treasuries, but we will use Treasuries for example
Let say you have $10,000,000 and you buy 30-year Treasury bonds currently yielding 3% ...
1
vote
2answers
109 views
Liquidity of U.S. treasury bonds and moving in and out of them before maturity?
I am curious about the liquidity of U.S. treasury bonds. I always hear about how liquid they are.
I like the rates of the 30 year treasury bonds but lets say I don't want to park money for 30 years. ...
2
votes
2answers
168 views
What's behind the long secular bull market in U.S. Treasuries?
Long-term treasury yields have been going down fairly continuously since the mid 1980s. Right now, the 30-year yield is under 3%, meaning that it is likely to barely keep up with inflation if held to ...
6
votes
1answer
84 views
Is it common for ratings agencies to disagree on sovereign debt ratings?
I heard today that Moody's and Fitch and left the US sovereign debt rating at AAA/Aaa, despite the downgrade from S&P to AA+. Is it common for ratings agencies to disagree on a rating? If so, is ...
12
votes
4answers
218 views
For an investor, what's the appropriate response to the U.S. Debt downgrade?
So the S&P has downgraded United States debt from it's AAA status. There have been other threads discussing why/when a downgrade will happen, as well as possibility of default. Instead, I want to ...
4
votes
3answers
115 views
How does a 2 year treasury note work?
The current prices of a 2yr seem to be near the 52wk low... is that good? Let's say I had $1,000 to spend and I put it all in 2yr treasury notes. Could I sell them in a year like stocks (if the price ...
5
votes
1answer
86 views
What effect would a lower U.S. government credit rating have on TIPS?
TIPS = Treasury Inflation Protected Securities.
Inflation could come quickly if the U.S. starts printing money to pay debt. I'm thinking about investing in these to protect my portfolio.
How does ...
4
votes
3answers
242 views
How could USA defaulting on its public debt influence the stock/bond market?
Ok, let's face it... US public debt is high and people are starting to wonder if the country might default on its debts. How would this hit United States' stock market, its bonds, or its currency? ...
3
votes
2answers
89 views
Is a pre-tax 401K, containing only treasury bonds, tax free on release?
In time-deferred pre-tax funds, such as 401K and IRAs, I understand that the contributions and capital gains tax is not paid until after they are released. In this case upon retirement/a certain age ...
4
votes
2answers
150 views
Would the effects of an anticipated default by a nation be mostly symbolic?
Given that the whole Greece saga has played out for a few years now -- and that most speculation is that Greece will default at some point -- if they finally do default, will it be mostly symbolic?
...
12
votes
5answers
208 views
What is the rationale behind stock markets retreating due to S&P having a negative outlook on the USA?
From a Bloomberg article published on 18/4/2011
Standard & Poor’s put a “negative” outlook on the AAA credit rating of the U.S., citing a “material risk” the nation’s leaders will fail to deal ...
3
votes
1answer
79 views
Who sets the prices on government bonds?
I noticed my country Greece wanted to sell bonds last year and they were stating "If they go above 7% we won't sell.". But who sets the price if not them? Why can't they say "the price is 5% and if ...
