Bond Bubble Expectations

February 12, 2013 by · Leave a Comment 

Bonds are loans that have the expectation of payback with interest. Government bonds are viewed as the safest financial instrument since the primary fiscal obligation of the state is to honor the terms of their own notes. However, in the fevered climate of currency wars among central banksters, the security factor of capital repayment is rapidly coming into question. As interest rates rise, the economic value of the bond diminishes. This inverted normal relationship is the essential dynamic of lending money with the purchase of Treasury Bonds. So what is all the talk about a bond bubble and likelihood that it will destroy your underwriting capital?

Read the entire article from Negotium Archives

Share


"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher" - SARTRE

BREAKING ALL THE RULES


eXTReMe Tracker