bonds

Our take on the investing, financial, & economic themes of the day

Reasons Still to Buy Bonds in Spite of Low Yields

4 June, 2014 by Mark O'Brien in Commentary
The other day Matthew noted a Deutsche Bank study that reported that Dutch Sovereign bonds are paying near their lowest yields since 1517, which is as far back as anyone has records.  No matter where you go, interest rates seem ridiculously low.   Here in the United States the bellwether ... read more...

Just How Expensive Are Bonds?

The prices for bonds move inversely to the interest that they pay to investors.  When bonds are in high demand, prices increase and bond yields decrease.  Probably the biggest financial story for 2014 thus far is the unexpected demand for bonds.   If you were wondering just how strong the ... read more...

The Benefits of Staying the Course through 2008-2009

At O’Brien Greene we don’t try to time the market.  Generally speaking, we stay fully invested, although the asset allocations of our portfolios may shift when broader market conditions warrant.  Here’s an interesting chart from a recent Fidelity presentation making the case ... read more...

Mis-Pricing Risk: European Edition

In April I commented about how central bank policy causes investors to mis-price risk.  The Wall Street Journal notes that 5-year yields on Spanish sovereign debt  have fallen from above 7% in 2012 to below those of U.S. Treasurys and Irish 10-year bond yields are below U.K. bonds of the same ... read more...

Mis-Pricing Risk & Financial Engineering

29 April, 2014 by Matthew O'Brien, Ph.D. in Commentary
Apropos of yesterday’s post about Apple’s debt-financed stock buybacks, here are some related stories I’ve been reading this morning. “Lose Your Triple-A Rating, Who Cares?”  The WSJ reports that the triple-A credit rating is becoming insignificant: ” Once ... read more...