A cautionary tale

26 June 2018

 

Over the years, various countries have issued ultra-long bonds with terms in excess of the 30 year period which has typically marked the upper bound of a “normal” maturity length. The British governments issued consolidated annuities or “consols” in the eighteenth century. They had no maturity date and thus paid interest theoretically forever or until repurchased. These perpetuities should not be confused with US consols which could be redeemed after...

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