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Chris Joye: bond bubble will eventually burst. In today's AFR Chris Joye warns Understanding where normalised interest rates lie is... important because convergence could cause problems. A one percentage point increase in 10-year government bond yields would inflict an 8.3 per cent loss on holders of these assets (fixed rate bonds), which are often assumed to be defensive. Possibly the best way to insulate portfolios from the risks of the great fixed-rate bond bubble is through floating-rate assets, including cash.



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