Here’s a chart from an article on Bloomberg today illustrating the yield curves of Japanese and German government bonds (the article is worth reading). You have to lend money for 9 years to Germany and more than 13 years to Japan if you want to earn a positive yield to maturity! Some 29% of developed-nation government…
Sovereign Debt Crisis
There have been some interesting developments over the past week that give me additional conviction that the next crisis the investment markets face will be a sovereign debt crisis (government bonds). We’ve already seen the early stages in Europe when yields in Greece, Portugal, Ireland, Italy and Spain spiked higher. Now we have bond yields…