4 ms·
I am also waiting for a well informed adult to give us a summary. But from what I know of the bond market, bonds have been trading at an absurdly low rate for t
by Kluny 11y ago
I am also waiting for a well informed adult to give us a summary. But from what I know of the bond market, bonds have been trading at an absurdly low rate for the past 20 years or so (please correct me if I'm wrong). This is an overdue correction, and is definitely bad for some people who have taken out an irresponsible number of bonds. But, possibly, will be very good for bond investors? I think?
- igravious 11y agoAnd please correct me if I am wrong but when you own a bond someone owes you money. Thus the low rate of interest. (Very low risk vouchsafed by nation states.) If bond rates start going up then...? Bad for governments looking to finance services? As you can see, I'm really trying to understand from whence the article's tone. Who's gonna get burnt? Probably Joe Schmoe again, huh.
- Kluny 11y agoCorrect, I should have said "issued an irresponsible number of bonds", not "taken out". And yes, I would also like to know who gets burnt. It isn't very clear.