When do government bonds outperform credit?

11 September 2019

By guest contributor Ethan Xing, analyst, Atchison Consultants

 

  Within the fixed-income sector, government bonds are the safest of safe assets to hold. They are issued by sovereigns, which have minimal default risks due to their taxation and security powers. Credit securities also have a risk of capital loss when issuers default, but this risk is higher than that of government bonds as issuers do not have the taxation powers of governments. Hence, credit securities usually offer investors...

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