Why it doesn't make sense to hold bonds
Csullag, Balazs; Danielsson, Jon
; and Macrae, Robert
(2016)
Why it doesn't make sense to hold bonds
VoxEU.
Investor demand for bonds is very high. This column argues that this is surprising because under almost any likely inflation scenario, including central banks merely hitting their target inflation rates, bondholders suffer large losses. The beneficiaries are sovereign and corporate borrowers; the losers are pension funds, insurance companies and some foreign exchange reserve funds. Meanwhile, the systemic risk from a bond crisis is increasing.
| Item Type | Article |
|---|---|
| Keywords | bonds,systemic risk,fixed-income investments |
| Departments |
Finance Systemic Risk Centre |
| Date Deposited | 20 Sep 2016 15:07 |
| URI | https://researchonline.lse.ac.uk/id/eprint/67800 |
Explore Further
- http://voxeu.org/article/why-it-doesnt-make-sense-hold-bonds (Publisher)
- http://www.lse.ac.uk/finance/people/faculty/Danielsson.aspx (Author)
- http://www.voxeu.org/ (Official URL)
ORCID: https://orcid.org/0009-0006-9844-7960