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Do you think investors can only lose heavily on bonds if the credit defaults? When bondholders accept 0.88% for 100 years, there is great potential for serious pain somewhere along the journey.
The fundamentals point toward bankruptcies of major sovereigns like the US and Japan in the next decade. The after effects could be catastrophic on all major asset classes. It’s time to discuss the makeup and costs of insurance.
The reputations of credit rating agencies took a hammering during the GFC, and while there are legitimate criticisms, they have an important role to play and are followed by most major investors.
Global debt levels have increased significantly over the last decade, but not to fund new businesses or productive assets. When debt funds growth and growth fuels debt, can we continue to push the problem into the future?
Modern Greece faces an ancient dilemma: should it sail within reach of Scylla, the sea monster that lives in Brussels, to avoid Charybdis, the ‘sucking whirlpool’ that is the return of the drachma?
Understanding what information is held on a consumer’s credit report can provide a pathway for negotiating better credit terms, whether or not a person has a strong credit history.
The story of a US hedge fund fighting to recoup its Argentinean bond investment has both stunned and amused all who have followed its progress over the last 12 years. Will the seizing of a naval vessel bring it to a close?
During the Australian government debt default, how did the performance of equities versus bonds compare? It was a time when investing in bonds was more common than equities.
Even when governments default on their debts, there is money to be made by investors who resist the temptation to panic sell in a crisis.
As it became obvious that Australia would need to default on its government debt in the 1930s, the question of whether to prioritise foreign or local debt was put to the people, with surprising results.
Very few people realise that Australia once defaulted on its sovereign debt during the Great Depression. Learn how the split between local and foreign currency debt affects the policy options available to Governments.