Why it doesn't make sense to hold bonds

Csullag, Balazs, Danielsson, Jon ORCID: 0009-0006-9844-7960 and Macrae, Robert (2016) Why it doesn't make sense to hold bonds. VoxEU.

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Abstract

Investor demand for bonds is very high. This column argues that this is surprising because under almost any likely inflation scenario, including central banks merely hitting their target inflation rates, bondholders suffer large losses. The beneficiaries are sovereign and corporate borrowers; the losers are pension funds, insurance companies and some foreign exchange reserve funds. Meanwhile, the systemic risk from a bond crisis is increasing.

Item Type:	Article
Official URL:	http://www.voxeu.org/
Additional Information:	© 2016 The Authors
Divisions:	Finance Systemic Risk Centre
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management H Social Sciences > HG Finance
Date Deposited:	20 Sep 2016 15:07
Last Modified:	12 Dec 2024 01:14
URI:	http://eprints.lse.ac.uk/id/eprint/67800

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