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The easiest and least exciting answer is to buy treasuries now as rates have not hit rock bottom and if the crystal ball said interest rates were lower in the f
by ohiovr 7y ago
The easiest and least exciting answer is to buy treasuries now as rates have not hit rock bottom and if the crystal ball said interest rates were lower in the future, bonds bought now would raise in value just like in normal times. Someone bought a 50 year government bond in Austria I think and the interest rate moved a smidge and the value of his bond went up a whopping 50%
I was laughing when greek debt was issued with sky high interest rates. Since it was back stopped by the ECB some saw it as a no lose scenario. I wonder what happened to those bonds. They aren't in default afaik.
- dtnewman 7y ago> "Someone bought a 50 year government bond in Austria I think and the interest rate moved a smidge and the value of his bond went up a whopping 50%" This can go the other way too. If interest rates rise a smidge, the value of these bonds can plummet.