Government bond: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
(Created page with "A debt security (because Sovereign entities can hardly issue equity, can they?) issued by a soverieng entity. Depending on the credit quality of the sovereign, govvie|...")
 
No edit summary
 
(2 intermediate revisions by the same user not shown)
Line 1: Line 1:
A [[debt security]] (because Sovereign entities can hardly issue equity, can they?) issued by a soverieng entity.  
{{g}}A [[debt security]] (because [[Sovereign|sovereigns]] can hardly issue equity, can they?) issued by a [[sovereign]] entity.  


Depending on the credit quality of the sovereign, [[govvie|govvies]] can be seen as unimpeachable articulations of the golden mean ([[US T-Bill|US Treasuries]]), safe as houses (G7 government bonds) or a hair-raising ride through the valley of death (Central and South American government debt, most notably that of {{tag|Argentina}}<ref>Argentina was responsible for the largest sovereign debt default in history — biggest of the '''''seven''''' it has been responsible for in the past 200 years.
Depending on the credit quality of the [[issuer]], [[govvie|govvies]] can be seen as unimpeachable articulations of the golden mean ([[US T-Bill|US Treasuries]]), as safe as houses (G7 government bonds) or a hair-raising ride through the valley of death (Central and South American government debt, most notably that of {{tag|Argentina}}<ref>Argentina was responsible for the largest sovereign debt default in history — biggest of the '''''seven''''' it has been responsible for in the past 200 years.
  [https://qz.com/1274875/how-argentina-went-from-selling-100-year-bonds-to-an-imf-rescue-in-a-matter-of-months/ More information her, for those with a taste for the gruesome].</ref>).  
  [https://qz.com/1274875/how-argentina-went-from-selling-100-year-bonds-to-an-imf-rescue-in-a-matter-of-months/ More information her, for those with a taste for the gruesome].</ref>).  
===Don’t cry for the bond market, Argentina===
As recently as 2017 Argentina — yes that’s seven-time defaulter, Call-me-“Lucky” Argentina —  was selling bonds with a 100 year maturity. Less than a year later, it asked the IMF for a USD30bn bailout.


As recently as 2017 Argentina was selling bonds with a 100 year maturity. Less than a year later, it asked the IMF for a USD30bn bailout.  That's one big old inflation play right there.
{{ref}}

Latest revision as of 17:49, 29 October 2019

The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™


Index — Click the ᐅ to expand:
Glossary

Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you.
Sign up for our newsletter.

A debt security (because sovereigns can hardly issue equity, can they?) issued by a sovereign entity.

Depending on the credit quality of the issuer, govvies can be seen as unimpeachable articulations of the golden mean (US Treasuries), as safe as houses (G7 government bonds) or a hair-raising ride through the valley of death (Central and South American government debt, most notably that of Argentina[1]).

Don’t cry for the bond market, Argentina

As recently as 2017 Argentina — yes that’s seven-time defaulter, Call-me-“Lucky” Argentina — was selling bonds with a 100 year maturity. Less than a year later, it asked the IMF for a USD30bn bailout.

References

  1. ↑ Argentina was responsible for the largest sovereign debt default in history — biggest of the seven it has been responsible for in the past 200 years. More information her, for those with a taste for the gruesome.
Retrieved from "https://jollycontrarian.com/index.php?title=Government_bond&oldid=34041"