> Bonds are also the rich man's way of getting paid by governments.
Unless the government, which has the power to break the agreement, breaks the agreement.
The history of finance is well-woven with the thread of sovereign defaults.
Unless the government, which has the power to break the agreement, breaks the agreement.
The history of finance is well-woven with the thread of sovereign defaults.
I'm just thinking that by the time a state defaults on bonds the "rich man" may be facing a bundle of problems.
How much would diversification help in those circumstances?
For a while during the 07-09 financial crisis, Coca-Cola bonds were priced by the market as less risky than Treasury bonds.
Large multinational corporations are probably safer than the riskiest countries if that's what you're asking.