Government Bonds as Risk-Free Benchmarks no Longer a Given
Dow Jones
Yesterday
1137 GMT - Markets continue to anchor valuations around the assumption that government bonds represent the risk-free benchmark, Insight Investment's April LaRusse says in a note. "However, in a world of rising sovereign debt burdens, we believe that assumption deserves closer scrutiny," the head of investment specialists says. History has shown that highly rated corporates, supranationals and agency issuers can occasionally trade through government bonds, and there are some examples of that today. "As fiscal risks become more prominent, investors may need to reassess whether yesterday's valuation frameworks remain fit for tomorrow's markets," she says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.