sharetrader
Page 3 of 3 FirstFirst 123
Results 21 to 21 of 21
  1. #21
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,222

    Default

    Quote Originally Posted by peat View Post
    Its worked pretty well I would've thought , capital gains, no failures (that I can think of) .
    With interest rates falling the capital value of any existing bond will rise. That is indisputable. It follows that in a climate of falling interest rates that most bondholders experiences will have been positive.

    However, I think it is a false belief to rely on this 'experience' and suggest that in a future climbing interest rate market, that most bond holders experiences will be positive. Many companies that issue bonds know this and have built in a future 'reset to market rates' clause at some time in the medium term future. That will stop the value of those bonds absolutely tanking as interest rates go up.

    SNOOPY
    Last edited by Snoopy; 12-09-2017 at 04:31 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •