Government Bonds vs Corporate Bonds
Financial World News toimetus · Hariduslik selgitaja · Kuidas hangime tootlusi
Sovereigns price the risk-free curve (in their currency). Corporates add a credit spread that can blow out in stress.
Selle juhendi täielik ülevaade on inglise keeles. Pealkiri, kokkuvõte ja navigatsioon on teie keeles, et otsustada, kas lugeda edasi.
Government Bonds vs Corporate Bonds — the mechanics
You are paid extra on corporates because shareholders rank below you but default is possible. In 2008 and 2020 that extra was not theoretical. Government bonds (of strong issuers) are the ballast.
Government (in local G7 currency): credit near the top of the scale, tighter spreads, better collateral. Corporate: extra yield for default, subordination, calls and worse liquidity.
A 100bp credit spread is compensation, not a gift. 2020 and 2022 showed it can widen faster than gilt yields move.
If you wanted ‘safe income’ and bought high-yield corporates because the coupon was 7%, you did not buy the product on this site.
Official sources (International guides)
Primary statistics and prospectuses for International guides are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Peamised järeldused
- Government (in local G7 currency): credit near the top of the scale, tighter spreads, better collateral.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
KKK
- Can a corporate yield less than a government bond?
- Rarely on a like-for-like currency and maturity, except for technical or tax reasons. If you see it, check the data date and the bond’s features.